Equipment has a book value of $4, 300 at the end of a project, but it can be sold for $5,400. What is the cashflow thatwill be recorded for capital budgeting purposes at the end of this project? Assume the tax rate is 30 %.

To calculate the cash flow for capital budgeting purposes at the end of the project, you need to…

Answered: Equipment has a book value of $4, 300…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Equipment has a book value of $4, 300 at the end of a project, but it can be sold for $5,400. What is the cashflow that will be recorded for capital budgeting purposes at the end of this project? Assume the tax rate is 30 %.