ABC corporation purchased a 100,000 asset two years ago with a residual value of 10,000 and useful life of 5 years. Currently, after two years of straight-line depreciation, the asset's book value is 64,000. However, the asset is with 80,000 in the market. 

When weighting debt and equity for ABC for our WACC calculation.What must value this asset?

Answer rating: 100% (QA)

To calculate the value of the asset for the WACC calculation we can use the market value of th... View the full answer