You should evaluate Van Avery Prep's R&D prism spectroscope
offering. The base price is $140,000 and another $30,000 will be
required to modify the equipment for the firm's special use. The
equipment belongs to the 3-year MACRS class (33%, 45%, 15%). and
will be sold in 3 years for $60,000. The equipment will require an
increase in net working capital of $8,000 (spare parts). The
project will not impact earnings, but it should save the firm
$50,000 a year before payroll taxes. The marginal federal plus
state tax rate is 30 percent. Answer True/Fa select only one not
yet answered Marked at 25.00 1 2 Flag question Is it reasonable to
buy a prism spectroscope? Why. Now let's say you get additional
information that it will be sold in 3 years for $60,000 with a 50%
chance and a 50% chance i. Has your decision changed?
You should evaluate Van Avery Prep's R&D prism spectroscope offering. The base price is $140,000 and another $30,000 wil
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