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QUESTION 5 A company purchased some fixed assets four years ago at a cost of $978,000. It no longer needs these assets, so it is

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QUESTION 5 A company purchased some fixed assets four years ago at a cost of $978,000. It no longer needs these assets, so it is going to sell them today at a price of $142,000. The assets are classified as 5-year property for MACRS. The MACRS table values.2000, 3200, 1920..1152, 1152, and.0576 for Years 1 to 6, respectively. What is the current book value of these assets? O $168,998.40 O $173,832.80 O $178,667.20 O $183,501.60 $188,336.00 QUESTION 6 Assume an equipment costs $735,000 and lasts six years before it is replaced. The operating cost is $52,347 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 10 percent? (Hint: the EAC should account for both initial investment and annual operating costs) O $230,754.84 $225,931.63 $221,108.42 $216,285.21 $211,462.00

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