Question: Complete problem P10-19 using ASPE. Data from P10-19 Original cost .............................................................................. $4,000,000 Accumulated depreciation ........................................................ 1,200,000 Fair value ................................................................................... 1,700,000 Costs to sell ............................................................................... 100,000

Complete problem P10-19 using ASPE.

Data from P10-19

Original cost .............................................................................. $4,000,000
Accumulated depreciation ........................................................ 1,200,000
Fair value ................................................................................... 1,700,000
Costs to sell ............................................................................... 100,000
Incremental cash flow 2014 .................................................... 500,000
Incremental cash flow 2015 .................................................... 400,000
Incremental cash flow 2016 .................................................... 700,000
Incremental cash flow 2017 .................................................... 800,000
Incremental cash flow 2018 and later .................................... 0
Risk-adjusted cost of capital .................................................... 12%

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