Estimated economic life is six years

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What is the net present value of a computer system if the cost is $50,000, estimated economic life is 6years, but the computer will be depreciated as a 5 year class asset under MACRS rules to a $0 estimated salvage value. The fund to buy the computer system is borrowed in the form of a bullet loan carrying a 10% interest rate.

Reference no: EM131519464

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