Question: Based on the sample data, what is the book value of the factory in Year 8? Pro-Forma Statement Year 1 2 3 4 5 6

Based on the sample data, what is the book value of the factory in Year 8?

Pro-Forma Statement Year 1 2 3 4 5 6 7 8 Sales 2338 2486 2644 2812 2990 3179 3381 3595 Variable Cost 1979 2104 2238 2379 2530 2691 2861 3043 Fixed Costs 237 252 268 285 303 322 342 364 Depreciation 100 100 100 100 153 53 53 53 EBIT 23 30 39 47 4 114 124 136 Interest 12 12 12 12 12 12 12 12 Taxable Income 11 18 27 35 -8 102 112 124 Taxes 4 6 9 12 -3 36 39 43 Net Income 7 12 17 23 -5 56 73 80 Year 0 1 2 3 4 5 6 7 8 Capital Investment 500 264 Accumulated Depreciation in Year 8 712 Book Value of the factory in Year 8 Market Value of the factory in Year 8 Salvage Value Net Of Tax

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