Californian Wave Inc. is now at the end of the final year of a project. The equipment originally cost P17,500, of which 65% has been depreciated. The firm can sell the used equipment today for P6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? (Round final answer to nearest peso)
Californian Wave Inc. is now at the end of the final year of a project. The equipment originally cost P17,500, of which 65% has been depreciated. The firm can sell the used equipment today for P6,000, and its tax rate is 25%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? (Round final answer to nearest peso)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Californian Wave Inc. is now at the end of the final
year of a project. The equipment originally cost
P17,500, of which 65% has been depreciated. The
firm can sell the used equipment today for P6,000, and
its tax rate is 25%. What is the equipment's after-tax
salvage value for use in a capital budgeting analysis?
(Round final answer to nearest peso)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd3fa358e-76e1-4ab7-81a9-0d17ae20ee8e%2F738261b6-7576-4871-a743-d5cb715f111c%2Fcsfa9g13_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Californian Wave Inc. is now at the end of the final
year of a project. The equipment originally cost
P17,500, of which 65% has been depreciated. The
firm can sell the used equipment today for P6,000, and
its tax rate is 25%. What is the equipment's after-tax
salvage value for use in a capital budgeting analysis?
(Round final answer to nearest peso)
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