(2) Consider an asset that is 3 years old and has a remaining physical life...
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Accounting
(2) Consider an asset that is 3 years old and has a remaining physical life of 2 years with the following projected cash flows:
EOY Revenue Operating Cost Salvage Value
4 $1,200 $800 $300
5 $1,100 $900 $0
Assume that the asset may currently be sold for $600 and that the before tax MARR is 10%. What is the PW of keeping the asset for TWO more years? Answer is -71.08 but I don't know how to get to it
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