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Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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the answer to this question is Q8.14= The after-tax present worth of the chip placer is −$1683. we just need to find how we get that answer for this question, please help NO EXCEL
Transcribed Image Text:8.14 (LG 8.5, 8.10) What is the after-tax present worth of a chip placer if it costs
$55 000 and saves $17 000 per year? After-tax interest is 10 percent. Assume the
device will be sold for a $1000 salvage value at the end of its six-year life. The
CCA rate is 20 percent and the corporate income tax rate is 54 percent.
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