Question
What is the net present value of the new computer system, if it cost $50,000 to install with an estimated economic life of 6 years
What is the net present value of the new computer system, if it cost $50,000 to install with an estimated economic life of 6 years but will be depreciated as a 5 year class asset under MACRS rules to a $0 estimated salvage value. The fund to install it will be borrowed from a bank at 10% pretax annual percentage rate of interest. Marginal tax rate 40%
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Corporate Valuation A Guide For Managers And Investors
Authors: Phillip R. Daves, Michael C. Ehrhardt, Ron E. Shrieves
1st Edition
0324274289, 978-0324274288
