Question: Look at Table 13-4 and answer these questions: a. Why is the net salvage value shown in Section III reduced for taxes? b. How is

Look at Table 13-4 and answer these questions:

a. Why is the net salvage value shown in Section III reduced for taxes?

b. How is the change in depreciation computed?

c. What would happen if the new machine resulted in a reduction in net working capital?

d. Why are the cost savings shown as a positive amount?

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a The firm has depreciated the asset to a book value less than its salvage value book value is 0 tha... View full answer

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