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    Value of the asset

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    Calculate the value of the asset given the following information:

    Asset invoice $1,500,000
    Cost of capital 15%
    Cash flow (YR 1) $350,000
    Cash flow (YR 2) $500,000
    Cash flow (YR 3) $720,000
    Salvage value (end of YR 3) $750,000
    Remaining depreciation (end of YR 3) $600,000
    Tax rate 40%.

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    https://brainmass.com/economics/personal-finance-savings/calculating-value-asset-321414

    Solution Preview

    See the attached file.

    Year Cash flow
    0 -1500000
    1 350000
    2 $500,000
    3 $1,530,000 (Salvage value has been added to the year 3 ...

    Solution Summary

    Response helps in calculating the value of the asset

    $2.49

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