Question: 29 4 points A project will require the purchase of equipment worth $42 million. Employee training will cost another $7 million at t=0. The
29 4 points A project will require the purchase of equipment worth $42 million. Employee training will cost another $7 million at t=0. The project will be operated for 4 years, generating estimated annual sales revenues of $18 million and annual expenses of $5 million. You expect to sell the equipment for $10 million at the end of the project. The tax rate is 40% and the cost of capital is 8%. The life of the equipment is 6 years and we will straight-line depreciate it to O. what is the net salvage value (NSV) at the end of the project?
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