Business
Business, 27.04.2021 15:30, skyemichellec

McClintock Corporation is considering investing $60,000 in a new piece of machinery that will generate net annual cash flows of $20,000 each year for the next 6 years. The machine has a salvage value of $4,000 at the end of its 6 year useful life. McClintock's cost of capital and discount rate is 10%. Which of the following tables and criteria should we use to discount the salvage value of the equipment? a. $20,000.
b. $60,000.
c. $4,000.
d. $120,000.

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