Calculate the salvage value of the equipment


Persius Corp is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in net income after tax of $121,000. The equipment will have an initial cost of $483,000 and have a 5 year life. If the salvage value of the equipment is estimated to be $103,000, what is the annual net cash flow?

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Accounting Basics: Calculate the salvage value of the equipment
Reference No:- TGS0682793

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