Question: Problem set#2 Find the following data from a capital budgeting spreadsheet. The tax rate = 30% Yr 1 Yr 2 Yr 3 Yr 4 Beginning

Problem set#2 Find the following data from a capital budgeting spreadsheet. The tax rate = 30%

Yr 1

Yr 2

Yr 3

Yr 4

Beginning Book Value

$275,000

$206,250

$137,500

$68,750

Annual Depreciation

$68,750

$68,750

$68,750

$68,750

End Book Value

$206,250

$137,500

$68,750

$0
  1. If the project is terminated in yr 3 &salvage value $30,000, the terminal cash flow will be closest to
  1. -$38,750
  2. -$11,625
  3. $50,375
  4. $41,625
  1. If the project is terminated in yr 3 &salvage value $10,000, the terminal cash flow will be closest to
  1. -$38,750
  2. -$11,625
  3. $50,375
  4. $41,625

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