Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase equipment for $126,841. This cost will be depreciated straight-line to zero over the projects 10-year life. Based on past information, you believe that

You purchase equipment for $126,841. This cost will be depreciated straight-line to zero over the projects 10-year life. Based on past information, you believe that you can sell the equipment for 19,694 when you are done with it in 10 years. The companys marginal tax rate is 21%.

Calculate the amount of depreciation per year.

Round your answer to 2 decimal places (e.g. 125.74632 = 125.75).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Private Equity Mathematics

Authors: Oliver Gottschalg

1st Edition

1908783508, 9781908783509

More Books

Students also viewed these Finance questions

Question

When should a purchaser use supplier development and why?

Answered: 1 week ago