The company wants to buy machinery for investment at a price of 1,500,000 baht. Transportation cost...

 

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The company wants to buy machinery for investment at a price of 1,500,000 baht. Transportation cost is 300,000 baht and installation cost is 200,000 baht. If the salvage value is 100,000 baht, find the depreciation value if using the straight line model for 5 years. Depreciation........... Company ABC has a capital structure of 40% debt and 60% equity. If the company has a WACC of 8.5% and a cost of debt of 5%, the company's tax rate is 20%. Find the cost of equity. Owner (cost of equity) cost of equity................ % The company wants to buy machinery for investment at a price of 1,500,000 baht. Transportation cost is 300,000 baht and installation cost is 200,000 baht. If the salvage value is 100,000 baht, find the depreciation value if using the straight line model for 5 years. Depreciation........... Company ABC has a capital structure of 40% debt and 60% equity. If the company has a WACC of 8.5% and a cost of debt of 5%, the company's tax rate is 20%. Find the cost of equity. Owner (cost of equity) cost of equity................ %

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Lets calculate the depreciation value using the straightline depreciation model for the machinery in... View the full answer