Question: Use the following information to answer the question(s) below. (include the MACRS Table from the Appendix) Casa Grande Farms is considering purchasing muliple tractors for
Use the following information to answer the question(s) below. (include the MACRS Table from the Appendix) Casa Grande Farms is considering purchasing muliple tractors for a total purchase price of $540,000. These tractors are expected to generate EBITDA of $250,000 for each of the next three years. Casa Grande Farms has a 21% tax rate and has a cost of capial of 10%. Aesuming that Casa Grande Farms depreclates these tractors using MACRS depreciation method for three-year property starting inmediately, then the NPV of buying the tractors is closest to: A. $560.765. B. 554,965 . C. 513.235 . D. $81.715 E. $20.785
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