D-76 A new chemical remediation tank is needed. C'urrentlechnology tanks, which cost $150,000, musI Iedrained and treated every 2 years at a cost of$30,000; the tanks will last 10 years, and ench willhave a salvage value of 5% of first cost. A tank withnew technology has just come on the market. T'horeare no periodic maintenance costs, and a tank willlast 20 years. If the new tanks cost $325,000, whatminimum salvage value, as a percentage of lirst cont,would be required for this technology to be a betleroption? Use a 12% interest rate.(a) 10%(b) 36%(c) 57%(d) 72%

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Answered: minimum salvage value, as a percentage…

minimum salvage value, as a percentage of first conl, would be required for this technology to be a hetter option? Use a 12% interest rate.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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