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Author Question: The depreciable value of an asset, under MACRS, is the ________. A) current cost B) current cost ... (Read 94 times)

a0266361136

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The depreciable value of an asset, under MACRS, is the ________.
 
  A) current cost
  B) current cost minus salvage value
  C) the original cost plus installation
  D) the original cost plus installation costs, minus salvage value

Question 2

Given the information in Table 10.1 and 15 percent cost of capital,
  (a) compute the net present value.
  (b) should the project be accepted?
 
  What will be an ideal response?



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ynlevi

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Answer to Question 1

C

Answer to Question 2

(a) NPV = (1,000 / 0.15 ) x 1 - 1 / (1.15 )5 - 2,500
= 1,000  (3.352 ) - 2,500 = 852
(b) Since NPV > 0, the project should be accepted.




a0266361136

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review


smrtceo

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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