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please solve with all steps An asset with initial cost P=$6,000 and salvage value S=0 at the end of its N=3 years life is producing
please solve with all steps
An asset with initial cost P=$6,000 and salvage value S=0 at the end of its N=3 years life is producing $3,000/ yr in profit. (a - 10 pts) Fill up the table (b-5 pts) You are interested in the After Tax performance of this project, would you invest in it if the After Tax MARR =10% ? Why? [Clearly explain your reasoning and show calculations] (d -4 pts) What would be the real (deflated) After Tax Cash Flow transaction in year 2, assuming an inflation rate f=5%/yr. (e - 15 pts) If you (the investor) are given the option to use the SL method (still with N=3 and S=0 ) instead of the SOYD method, would you use it? Why? [Clearly explain your reasoning]Step by Step Solution
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