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please answer with written formulas, ty! Tippit-the-Strong Company is looking at a new sausage system with an installed cost of $280,000. This asset will be
please answer with written formulas, ty! Tippit-the-Strong Company is looking at a new sausage system with an installed cost of $280,000. This asset will be depreciated according to MACRS 5 years over the project's three-year life, at the end of which the sausage system can be sold for $77,000. The sausage system will create annual savings of $195,000 (before taxes and depreciation), and the system requires an initial investment in net working capital of $36,000. The tax rate is 35 percent. TABLE 10.7 Modified ACRS Depreciation Allowances What is the OCF in Year 2 ? $158,110 5146.350 $158,990 $145.566 What is the book value at the end of Year 3 ? $77,000 $80,640 $98,450 $100,500 Question 3 3/3pts What is the salvage value? $78.724 $88,650 $79.234 $80,640 $77,000
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