A firm purchases a depreciable asset at year 0 at price 148, Ask an Expert

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A firm purchases a depreciable asset at year 0 at price $148, which is uses during the assets of 6 years, and the asset is depreciated according to a double declining balance depreciation. At the end of the year 6, the firm sells the asset at price $74, the operation profit for the year 6 is $13, the firm incomes are taxed at the 28% tax rate. Calculate the present value of year 6 cash flow (after-tax, including operations and sale), if inflation is 1.4% and the real interest rate is 4%

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91822194

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