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You need to solve this exercise using Excel functions. (Please show a picture on excel on how you solved this) ABC Inc. plans to invest
You need to solve this exercise using Excel functions. (Please show a picture on excel on how you solved this)
ABC Inc. plans to invest in new equipment. It will purchase the new equipment for $130,000 and sell its old version, which is fully depreciated, for $25,000. The new equipment has a 10-year useful life and will save $45,000 a year in expenses before tax. The opportunity cost of capital is 11%, and the firms tax rate is 21%. What is the NPV of this investment if ABC can benefit from bonus depreciation?
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