Jolly Corporation is considering an investment in equipment for £25,000. Data related to the investment are as follows: Jolly claims capital allowances using the straight-line method of depreciation . In addition, its tax rate is 40 percent, and the life of the equipment is four years with no salvage value. Cost of capital is 12 percent.
What is the net present value of the investment?

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The Answer of Jolly Corporation is considering an investment in equipment for £25,000. Data related to the investment are as follows: Jolly claims capital allowances using the straight-line method of depreciation . In addition, its tax rate is 40 percent, and the life of the equipment is four years with no salvage value. Cost of capital is 12 percent.
What is the net present value of the investment?

Jolly Corporation Is Considering an Investment in Equipment for £25,000