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You owe considering two machines A & B that can be used for the same reduce costs by 670,000 per 2010 which will be relcased
You owe considering two machines A & B that can be used for the same reduce costs by 670,000 per 2010 which will be relcased at the end of the project has a 5yr Straight line depreciable purpose Machine A cost $ 250,000 W working capion Of $20,000 at needs ilfe and can be sold at the end of the Projects lite for $50,000 Machine B costs 320,000, will reduce costs by $70,000 per yr hs networking capital of 40,000 at time zero, will be released at the end of its life has a 10 y straight line depree- able life and can be sold at the end for! t60,000 Assume that the tax rate is 38% the discount rate is 10% What are the aftex tax Salvage values for A omdB at the end of their lives. Dont include the annual opperating cash HOW in this conciation Just the savage value plus or minus amy tax benefit or liability a 31,000 for A & 37,200 for B b. 50,000 for A & 60,000 for B c. 40,000 for A 50,000 for B d. 23,000 for A & 43, 100 for B e. 33,000 for A & 39,600 for B
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