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Home Q & A Board Other Fields Homework Help Business Accounting
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inkster inkster
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10 months ago

Croce, Incorporated, is investigating an investment in equipment that would have a useful life of 12 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the salvage value, is −$580,153. (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.

How large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)



▸ $580,153

▸ $98,626

▸ $3,412,665

▸ $3,816,796
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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relisabethrelisabeth
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10 months ago
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inkster Author
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10 months ago
Thanks for your help!!
annakc
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Yesterday
Helped a lot
Harvinder
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2 hours ago
Brilliant ツ
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