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jene277 jene277
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A month ago
Queue de Castor Foods is considering the purchase of a new capital asset for $35,000. The asset has an economic life of three years, a CCA rate of 20%, and expected salvage value of $5,000. The project also requires an investment in net working capital of $4,500. Assume the asset class remains open after the asset is sold. The firm's cost of capital is 14% and marginal tax rate is 40%. What is the present value of the terminal after-tax cash flow (ECFn)?

▸ $9,900.48

▸ $10,505.26

▸ $6,412.23

▸ $2,319.20
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Corporate Finance

Corporate Finance


Edition: 5th
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bizmailovabizmailova
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jene277 Author
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A month ago
this is exactly what I needed
Transonic
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Brilliant ツ
jamiebonf99
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You make an excellent tutor!
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