ABC Company is considering a new project and has just purchased equipment that has a...

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Finance

ABC Company is considering a new project and has just purchased equipment that has a five-year life. The equipment costs $30 million and will be sold for 20% of its original cost in year 4. Compute the amount of depreciation and the book value for each year. If the tax rate is 21%, what is the after-tax salvage value in year 4.

Construct a loan amortization table in Excel for the car loan in Problem 3. You should do the problem in Excel using monthly payments and should submit the spreadsheet. The spreadsheet should contain the formulas to compute the values in each cell.

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