Question
Project A is to be closed and all equipment scrapped in year 10.At that point, Project A has a salvage value of $2,000,000 and book
Project A is to be closed and all equipment scrapped in year 10.At that point, Project A has a salvage value of $2,000,000 and book value of $200,000.The tax rate is 27%, and the firm's WACC is 10%.Please calculate the present value of the cash flow for liquidation of equipment in year 10 as of time 0.
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
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