The allowable depreciation rate is 15 on a straight line


A firm is looking to purchase a new machine which will cost $672,000 today and in 5 years' time the machine could be sold for $166,000. The allowable depreciation rate is 15% on a straight line basis. The company tax rate is 30%. What is the terminal value of the machine.

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Financial Management: The allowable depreciation rate is 15 on a straight line
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