Investment in the equipment financially attractive, Accounting Basics

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Investment in the equipment financially attractive

Picado, Inc. is investigating an investment in equipment that would have a useful life of 8 years. The company uses a discount rate of 9% in its capital budgeting. The net present value of the investment, excluding the salvage value, is -$389,000. To the nearest whole dollar how large would the salvage value of the equipment have to be to make the investment in the equipment financially attractive?

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Accounting Basics: Investment in the equipment financially attractive

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Accounting Basics: Investment in the equipment financially attractive

Reference No:- TGS062679

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Price of the bond using annual compounding

Q : Determining the beginning capital balance

Q : Result of transaction under the fair value method

Q : Redemption value to adjust for changes

Q : Investment in the equipment financially attractive

Q : Equity changed-amount from the beginning of the year

Q : Direct costing-manufacturing margin

Q : Company-wide net income

Q : Excess of sales over the cost of goods sold

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Investment in the equipment financially attractive

Reference No:- TGS062679

Recent Questions Asked Accounting Basics

Q : Price of the bond using annual compounding

Q : Determining the beginning capital balance

Q : Result of transaction under the fair value method

Q : Redemption value to adjust for changes

Q : Investment in the equipment financially attractive

Q : Equity changed-amount from the beginning of the year

Q : Direct costing-manufacturing margin

Q : Company-wide net income

Q : Excess of sales over the cost of goods sold

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