Complete problem P10-19 using ASPE. Data from P10-19 Original cost .............................................................................. $4,000,000 Accumulated depreciation ........................................................ 1,200,000 Fair

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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%

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...
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Intermediate Accounting

ISBN: 9787300071374

3rd Edition Vol. 1

Authors: Kin Lo, George Fisher

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