(Ignore income taxes in this problem.)Chipps Corporation uses a discount rate of 9% in its capital budgeting.Management is considering an investment in telecommunications equipment with a useful life of 5 years.Excluding the salvage value of the equipment,the net present value of the investment in the equipment is -$530,985.
Required:
How large would the salvage value of the telecommunications equipment have to be to make the investment in the telecommunications equipment financially attractive?

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The Answer of (Ignore income taxes in this problem.)Chipps Corporation uses a discount rate of 9% in its capital budgeting.Management is considering an investment in telecommunications equipment with a useful life of 5 years.Excluding the salvage value of the equipment,the net present value of the investment in the equipment is -$530,985.
Required:
How large would the salvage value of the telecommunications equipment have to be to make the investment in the telecommunications equipment financially attractive?

(Ignore Income Taxes in This Problem