Compute present value of salvage value at the end of year


Assume the machine can be sold for $10,000 at the end of year 3. Compute the present value of the salvage value at the end of year 3, if the tax rate is 34%, and the discount rate is 10%.

1. $10,000
2. $7,513
3. $6,600
4. $8,616
5. $9,678

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Finance Basics: Compute present value of salvage value at the end of year
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