p2 please help.... DQuestion 15Ryan Company is considering whether to invest in a piece of equipment that requires an investment of $800,000 today. The project will provide net before-tax operating cash inflows of $240,00of each year for eight years, and it will have a salvage value of $0 at the end of eight years. Ryan Company uses straight-line depreciation for income tax purposes. The income tax rate is 40% anrate is 13%. Income taxes are paid at the end of the year. Calculate the net present value of the piece of equipment. Don't forget income taxes!!!O negative $10,897O positive $82,972O positive $351,704Onegative $25,882O positive $178,948O negative $128,172O positive $159,754O positive $252,780

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Answered: D Question 15 Ryan Company is…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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3
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Intro Time Weiner Inc. is now at the end of the final year of a project. The firm originally bought some project equipment for $46,000, which could now be sold for $27,600. 44% of the equipment cost has already been depreciated. The company's tax rate is 34%. Part 1 What is the after-tax salvage value? If the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale. 0+ decimals Attempt 1/1 Save
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