Golddex Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is $220,000. The firm would be able to recover $60,000 in working capital when the equipment is sold. Their tax rate is 21%. The old equipment has a book value of $140,000. What is the terminal cash flow? $87,400 $227,400 O $198,000 O $187,400 O $263,200
Golddex Corporation has decided to sell some old equipment to make room for a new project. The salvage value of the equipment is $220,000. The firm would be able to recover $60,000 in working capital when the equipment is sold. Their tax rate is 21%. The old equipment has a book value of $140,000. What is the terminal cash flow? $87,400 $227,400 O $198,000 O $187,400 O $263,200
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 20EB: Taos Productions bought a piece of equipment for $79,860 that will last for 5 years. The equipment...
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