Ausel's Is Considering a Five-Year Project That Will Require $738,000

question 69

Multiple Choice

Ausel's is considering a five-year project that will require $738,000 for new fixed assets that will be depreciated straight-line to a zero book value over five years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for 18 percent of their original cost. The project is expected to generate annual sales of $679,000 with costs of $321,000. The tax rate is 22 percent and the required rate of return is 15.2 percent. What is the amount of the aftertax salvage value?

• A) $105,165.60
• B) $103,615.20
• C) $104,409.20
• D) $132,840.00
• E) $118,406.90

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The outcomes or consequences resulting from a particular action or condition.

Shell Model

Model of electron distribution in an atom.

Nitrogen Atom

A chemical element with symbol N and atomic number 7, constituting a key part of living organisms' molecules, such as DNA and proteins.