Question
What is the net equipment cost, given the following, when a new piece of equipment replaces an old one: Old equipment sells for $125,000 Book
What is the net equipment cost, given the following, when a new piece of equipment replaces an old one: Old equipment sells for $125,000 Book value of old equipment 22,000 Tax Rate 40% New equipment cost 800,000 Site survey 18,000 Installation cost 20,000
Question Two
Equipment is sold for $30,000 at the end of a project. The working capital return is $50,000. The tax rate is 40%. What is the terminal cash flow?
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
