Question: please try to use BAI 2 calculator, no excel 5. Roy McAvoy Industries is considering a new product expansion. The project will require the firm
please try to use BAI 2 calculator, no excel
5. Roy McAvoy Industries is considering a new product expansion. The project will require the firm to use an old piece of equipment that could otherwise be sold today. Currently, the old piece of equipment has a market value of $200,000, and has a book value of $120,000. The tax rate facing the firm is 21%, and the cost of capital is 18%. What is the opportunity cost today for accepting this project
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