Relevant net working capital amount for the project

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1. A capital budgeting project shows a decrease in accounts receivable of $30,000 and an increase in accounts payable of $55,000. What is the relevant net working capital amount for the project?

2. You just purchased some equipment that is classified as 5-year property for MACRS. The equipment cost $167,600. If you sell the equipment for $75,000 at the end of three years, what is the after tax salvage value? the tax rate is 34 percent.

Reference no: EM131819574

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