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An Asset Is Purchased for $100 000

Question 37

Multiple Choice

An asset is purchased for $100 000. It depreciates at 20% per year. After 10 years it will be sold for salvage for $10 700. If the company is taxed at 50% and has an after-tax MARR of 10%, what is the present worth of this sale in the year of purchase?


A) $1 374
B) $2 177
C) $2 747
D) $4 125
E) $7 126

Correct Answer:

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