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How large would the salvage value of the telecommunications

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Reference no: EM132918101

Question - Chipps Corporation uses a discount rate of 9% in its capital budgeting. Management is considering an investment in telecommunications equipment with a useful life of 5 years. Excluding the salvage value of the equipment, the net present value of the investment in the equipment is -$530,985. (Ignore income taxes.)

How large would the salvage value of the telecommunications equipment have to be to make the investment in the telecommunications equipment financially attractive?

Reference no: EM132918101

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