ReMATE Incorporate expects free cash flow earnings of $8 million next year. Since the firm is...

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business finance

Answer 1

Answer #1

Solution2:-

Depreciation Per year = $\frac{Initial Cost}{Useful Life}$

Depreciation Per year = $\frac{70,000}{5}$

Depreciation Per year = $14,000

To Calculate Book Value of Asset Today-

Book Value = Initial Cost * Depreciation Per year * 2

Book Value = $70,000 - $14,000 * 2

Book Value = $70,000 - $28,000

Book Value = $42,000

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Answer 2

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