Question: pls share excel calculations Question 4: 8 Marks A new excavator worth $10,000 can replace an existing excavator and provide annual savings of $3000 for

 pls share excel calculations Question 4: 8 Marks A new excavator

pls share excel calculations

Question 4: 8 Marks A new excavator worth $10,000 can replace an existing excavator and provide annual savings of $3000 for five years. The old excavator can be sold for $500 The new, as well as old excavator, are eligible for tax depreciation at 20% per annum of the current value over the next 5 years. Assuming a cost of capital at 8% and a tax rate of 30%, what is the project NPV

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!