An equipment's with 5 years useful life is with initial cost of $5,000. After 5 years,the equipment's useful life will be 0. The equipment's value will be depreciatedlinearly. Tax rate=30%. What is the after tax residual value of this equipment at theend of 3th year if the equipment was sold at 4,000.$2800$4200$3400$1500

Cost = $5,000Salvage Value after 5 years = 0Useful life = 5 yearsCapital gains tax rate = 30%Sale…

Answered: An equipment's with 5 years useful life…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 5PROB

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