A Project Requires $1

question 70

Multiple Choice

A project requires $1.208 million in new equipment that will be depreciated straight-line to zero over the 5-year life of the project.The firm expects to sell the equipment at the end of the project for 20 percent of its original cost.The discount rate is 13 percent and the tax rate is 35 percent.What is the after-tax salvage value of the equipment?

• A)$168,800
• B)$174,000
• C)$148,900
• D)$167,400
• E)$157,040

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Definitions:

Urban

Pertaining to cities or towns; characterized by higher population density and vast human features in contrast to rural areas.

Seacoast Cities

Urban areas located directly on the coast or shoreline, often characterized by their significant roles in trade, shipping, and economic development due to their access to maritime routes.

Slave

A person who is legally owned by another person and is forced to obey them, deprived of personal freedom.

Thomas Jefferson

The third President of the United States, serving from 1801 to 1809, he is known for his role in writing the Declaration of Independence and for the Louisiana Purchase.