Question: QUESTION 1.} 2.5 pomB SaveAnswer Use the following information to estimate the taxable income for year 5. Sales in units Year 1 'I 0.000 2

 QUESTION 1.} 2.5 pomB SaveAnswer Use the following information to estimate

QUESTION 1.} 2.5 pomB SaveAnswer Use the following information to estimate the taxable income for year 5. Sales in units Year 1 'I 0.000 2 20.000 3 40.000 4 45.000 5 41 .000 6 25.000 Unit price for sales in years 1 to 3: $50 and for years 4to 6: $45 Variable Cost NC) : $25 per unit Fixed Cost (FC) : $50 000 per year Initial Investment: $600 000 Salvage: $50 000 at the end of year 6 tax rate: 34% cost of capital 15% depreciation method: prime cost to zero 0 $375,000 0 $570,000 0 $550,000 0 $720,000 0 $770,000

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