Question: SHOW SOLUTIONS FOR ALL (1) when computing the net present value of the project, what is the after-tax cash flow from the salvage value in

SHOW SOLUTIONS FOR ALL

(1) when computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year? [A. 0; B. 3000; C. 10000; D. 7000]

(2) the net present value is closest to: [A. (4949); B. 25780; C. 23766; D. (6412)

SHOW SOLUTIONS FOR ALL (1) when computing the net

Ling}; Inc. has provided the following data concerning an investment project that has been proposed: Initial in\\'cstmcnt................ 3190.000 Annual cash receipts .......... 3114.000 Life ofthe project............... 9 years Annual cash expenses ........ 351.000 Salvage value 510.000 The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 7 years without any reduction for salvage value. The company uses a discount rate of 19%

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