Ch $13-$ End$-$of$-$Chapter Problems$-$LPK $-$ Real Options and Other Topics in Capital Budgeting

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Attempts $$ Keep the Highest $/15$

$5.$ Problem $13\mathrm{.}05($Abandonment Option$)$

$$ eBook expected year$-$end abandonment values $($after$-$tax salvage values$)$ for the truck are given below. The company's WACC is $9\%.$

After$-$Tax

$\backslash$table$[[$Year$,$Annual After$-$Tax Cash Flow,Abandonment Value$],[0,($$$21,500),-],[1,6,500,$$$17,500$