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Required: ( a ) Analyze the property, plant, and equipment and trucks accounts to determine their estimated remaining useful lives. ( b ) Determine the
Required:
a Analyze the property, plant, and equipment and trucks accounts to determine their estimated
remaining useful lives.
b Determine the relevant cash flows for continuing to operate the factory until the end of
instead of closing it immediately. c Calculate the net present value of continuing to operate the factory using your estimated cash flows
from part b Assume a discount rate of
d What is your recommendation to Johnson Control Systems Limited concerning the operation of
the factory?
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