Q. Darlington Company is considering investing in an equipment, which will increase yearly cash revenues by $65,000
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Q. Darlington Company is considering investing in an equipment, which will increase yearly cash revenues by $65,000 and yearly cash expenses to operate the equipment $30,000. The asset will cost $200,000 and will last 8 years, with a salvage value of $40,000. Assuming a tax rate of 39%, determine the net present value of this asset, if the company requires a 10% return on investments?
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