Let's say you are an Uber driver that owns your car. You paid $10,000 for it 4 years ago. AS a new car, it sold for $15,000 6 years ago. In 5 years, you plan to quit and sell the car. You expect to...


Let's say you are an Uber driver that owns your car.  You paid $10,000 for it 4 years ago.   AS a new car, it sold for $15,000 6 years ago.   In 5 years, you plan to quit and sell the car.  You expect to sell it to CarMax for $7,000.  Since you were running it as a business, you have kept track of the depreciated tax value which will be $2,000 in 5 years.  Your tax rate is 20%.   Assume a discount rate of 6%.  What is the present value of your terminal cash flow?   Round to the nearest dollar and use the $ symbol.   Hint...the last digit is 4.



Jun 02, 2022
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