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QUESTION 1 Assume that the terminal value of an investment is $55,000. This purchase has a cost of $75,000 with a marginal tax rate of

QUESTION 1

  1. Assume that the terminal value of an investment is $55,000. This purchase has a cost of $75,000 with a marginal tax rate of 20%. This investment has an annual depreciation of $2,500. What is the present value of the after-tax value after 10 years?

    a

    $54,000
    b

    $53,000
    c

    $56,000
    d

    $52,000

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