Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Save Anower Question 25 3.3 points Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line

image text in transcribed
image text in transcribed
Save Anower Question 25 3.3 points Ausel's is considering a ten-year project that will require $850,000 for new fixed assets that will be depreciated straight-line to a zero book value over the ten years. At the end of the project, the fixed assets can be sold for 15 percent of their original cost. The project is expected to generate annual sales of $928,000 and costs of $721,000. The tax rate is 35 percent and the required rate of return is 14.6 percent. What is the amount of the after-tax salvage value? $82,875 $104,400 $111,020 $114,400 Question 26 3.3 points A project will produce cash inflows of $2,800 a year for 4 years with a final cash inflow of $5,700 in year 5. The project's initial cost is $9,500. What is the net present value of this project if the required rate of return is 12 percent? O A $39.16 OB $1,048.75 oc $1,327.85 OD $2,238.91

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Banking Reforms And Monetary Policy In The Peoples Republic Of China

Authors: Yong Guo

1st Edition

1403900787,1403914540

More Books

Students also viewed these Finance questions

Question

What is IUPAC system? Name organic compounds using IUPAC system.

Answered: 1 week ago

Question

What happens when carbonate and hydrogen react with carbonate?

Answered: 1 week ago