Question: please answer it in a way where i can copy and paste ASAP please Your Company is considering replacing the old computer system with a
Your Company is considering replacing the old computer system with a new one, all the information about the two systems are listed below, your job is to decide if the company should replace the old system. Assume the required return is 12% and tax rate is 21%. Old System: Initial cost = 120,000, Annual depreciation = 10,000, Purchased 6 years ago, Book Value today = 60,000, Salvage today = 63,000, Salvage in 4 years = 20,000 New System: Initial cost = 180,000, 4-year life, Salvage in 4 years = 0, Cost savings = 58,000 per year, straight line depreciation. Please create the pro-forma income statement for this project
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