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please do it in regards to their being a salvage value of $5000 24. n asset is being considered whose first cost, life, recovery period,
please do it in regards to their being a salvage value of $5000
24. n asset is being considered whose first cost, life, recovery period, salvage Value, and annual operating expenses, respectively, are estimated at $15,000, 12 years, 10 years, zero, and $800. The asset, classified as 10-year property, will be depreciated by the MACRS (GDS) straight-line method of depreciation The effective income tax is 40%. Determine the AE(1) cost at 12% for the tax cash flow if The initial investment is made from retained earnings. b. The initial investment is borrowed at 8% with repayment of principal and interest in 10 equal annual amounts. The initial investment is borrowed at 8% with repayment of interest at the end of each period and repayment of the loan principal at the end of 10 years. 24. n asset is being considered whose first cost, life, recovery period, salvage Value, and annual operating expenses, respectively, are estimated at $15,000, 12 years, 10 years, zero, and $800. The asset, classified as 10-year property, will be depreciated by the MACRS (GDS) straight-line method of depreciation The effective income tax is 40%. Determine the AE(1) cost at 12% for the tax cash flow if The initial investment is made from retained earnings. b. The initial investment is borrowed at 8% with repayment of principal and interest in 10 equal annual amounts. The initial investment is borrowed at 8% with repayment of interest at the end of each period and repayment of the loan principal at the end of 10 years Step by Step Solution
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