Question: ABCs is considering a five-year project that will require $738,000 for new fixed assets that will be deprecated straight line to a $150.000 value over
ABCs is considering a five-year project that will require $738,000 for new fixed assets that will be deprecated straight line to a $150.000 value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for 20 percent of their original cost. The project is expected to generate annual sales of $679,000 with costs of $321,000. The tax rate is 28 percent and the required rate of return is 15.2 percent. What is the amount of the after tax Salvage value 5148,128.00 $146,200.00 3148,272.00 $14,320.00
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