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Question 2 Scenario Analysis You are STRONGLYtred te werel for this problem if you plan to talk to me about this problem Your tim Agro

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Question 2 Scenario Analysis You are STRONGLYtred te werel for this problem if you plan to talk to me about this problem Your tim Agro Products, is considering a tractor that would have a cost of $35,000 would increase pretax operating cash flow before taking account of depreciation by $12,000 per year and would be depreciated on a straight line basis to zero over 5 years at the rate of 57,000 per year beginning the first year. Thus, annual clow would be $12.000 before ans plus the tax savings that result from $7,000 of depreciation) The managers disagree about whether the tractor would last years. The controller in that she knows of actors that have lasted only years. The treasurer grees with the controller, but he argues that most rector do gve 5 years of service. The service manager the states that some test for song as years. Assume that if the tractor only last 4 years, then the firm would receive a tax credit in Year 4 because the tractor's salvage value at that time is less than its bok Under this scenaries, the firm would not take precision in Year Give this discussion, the CFO Ses you to prepare a semana mays to determine tine importance of me actor ife on me NIV Umarre federal pussa tax rate, and a 11 WACC Assuming each of the indicated as the same probability of occurring roboty 13 was the tractors expected NPV Mound your browser to two decimal por Donor round intermediate calcolo A new amount the corned by a Tractors NPV af is 5 years 51.558.37 8 Tractor Practuales years $3.131.10 CTNPV actualites your 11.400.40 Tractorspected 55,76233

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