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mhbtelc mhbtelc
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A year ago

Chipps Corporation uses a discount rate of 9% in its capital budgeting. Management is considering an investment in telecommunications equipment with a useful life of 5 years. Excluding the salvage value of the equipment, the net present value of the investment in the equipment is −$530,985. (Ignore income taxes.)

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

Required:

How large would the salvage value of the telecommunications equipment have to be to make the investment in the telecommunications equipment financially attractive?

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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live4outdoorslive4outdoors
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A year ago
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mhbtelc Author
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A year ago
Correct Slight Smile TY
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Smart ... Thanks!
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This helped my grade so much Perfect
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