Question
Six years ago, ABC Company invested $45,525 in a new machinery. The investment in net working capital was $5,065 which would be recovered at the
Six years ago, ABC Company invested $45,525 in a new machinery. The investment in net working capital was $5,065 which would be recovered at the end of the project. Today, ABC Company is selling the machinery for $19,722. Today, the book value of the machinery is $12,039. The tax rate is 27 percent. What are the terminal cash flows in Year 6?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
