Installation cost Pretax salvage value Operating cost per year Initial NWC Tax rate Discount rate *Depreciation straight-line over life Output area: SA SASA GA 385,000 $ 60,000 135,000 35,000 21% 10% Annual depreciation charge $ 77,000 Aftertax salvage value $ 47,400 OCF $ 122,820 NPV LO 5
Installation cost Pretax salvage value Operating cost per year Initial NWC Tax rate Discount rate *Depreciation straight-line over life Output area: SA SASA GA 385,000 $ 60,000 135,000 35,000 21% 10% Annual depreciation charge $ 77,000 Aftertax salvage value $ 47,400 OCF $ 122,820 NPV LO 5
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
Related questions
Question
Answer using excel and make sure answer is correct. here is the data only answer based on this
![Installation cost
Pretax salvage value
Operating cost per year
Initial NWC
Tax rate
Discount rate
*Depreciation straight-line
over life
Output area:
SA SASA GA
385,000
$
60,000
135,000
35,000
21%
10%
Annual depreciation charge
$
77,000
Aftertax salvage value
$
47,400
OCF
$
122,820
NPV
LO
5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9c830ab-8782-4e38-b709-675cb890d46a%2F74bccdc0-292b-420b-9099-e8e9a5a22107%2Fzovt6l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Installation cost
Pretax salvage value
Operating cost per year
Initial NWC
Tax rate
Discount rate
*Depreciation straight-line
over life
Output area:
SA SASA GA
385,000
$
60,000
135,000
35,000
21%
10%
Annual depreciation charge
$
77,000
Aftertax salvage value
$
47,400
OCF
$
122,820
NPV
LO
5
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