Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
Question 14 Charlie Corporation considering a proposal to operate a gold mine in the Yukon. At the end of the project's 10-year life, all the
Question 14 Charlie Corporation considering a proposal to operate a gold mine in the Yukon. At the end of the project's 10-year life, all the mining equipment will be sold. The equipment had an original cost of $250,000 and at the time of sale will have accumulated depreciation of $220,000. It is estimated the equipment will be sold for $70,000. Charlie Corporation has a tax rate of 21% and a weighted average cost of capital of 25%. What is the present value of the terminal cash flow? $9,156.45 $6,614.25 $7,516.19 $5,937.79
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started