The tax rate is 40 bill uses a wacc of 12 what is the tcf


Bill operates a burger place and bought a new grill three years ago with a basis cost of $20,000 and it would be used an estimated 4 years. It was depreciated straight to $2,000 salvage over 4 years. Bill wants to sell the grill today for $2,000. The grill did not increase revenue but did result in labor savings of $8,000 a year over 4 years. The tax rate is 40%. Bill uses a WACC of 12%. What is the TCF for the sales of the grill?

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Financial Management: The tax rate is 40 bill uses a wacc of 12 what is the tcf
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