Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Six years ago, ABC Company invested $42613 in a new machinery. The investment in net working capital was $9831 which would be recovered at the
Six years ago, ABC Company invested $42613 in a new machinery. The investment in net working capital was $9831 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $22175. Today, the book value of the machinery is $24965. The tax rate is 37 percent. What are the terminal cash flows in Year 6? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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