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Your boss has asked you to calculate the present value of the salvage value of a piece of equipment. The company paid $1,040,000 for the
Your boss has asked you to calculate the present value of the salvage value of a piece of equipment. The company paid $1,040,000 for the equipment. That will be used for 6 years. The company will sell the equipment for its salvage value of $180,000 6 years from today. The required rate of return is 8.0% compounded annually. What is the present value of the salvage value?
A)116472.58 B)113430.53 C)115240.55 D) 112542.31
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