Using MACRS depreciation method

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Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000. These tractors are expected to generate EBITDA of $250,000 for each of the next three years. Casa Grande Farms has a 35% tax rate and has a cost of capital of 10%.

Assuming that Casa Grande Farms depreciates these tractors using MACRS depreciation method for three-year property starting immediately, find the NPV

Reference no: EM13894716

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Using MACRS depreciation method : Casa Grande Farms is considering purchasing multiple tractors for a total purchase price of $540,000. These tractors are expected to generate EBITDA of $250,000 for each of the next three years. Assuming that Casa Grande Farms depreciates these tract..

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