Expense which is related to the company sole

Reference no: EM139658

In year 1 Laylor Company has revenues of $100,000, advertising expense of $22,000, depreciation of $15,000, and other expenses of $53,000. The advertising expense in year 1 is expected to benefit the company for 2 years. The depreciation expense is related to the company's sole $60,000 asset, which is expected to last 4 years. The cost of capital is 10%.

Reference no: EM139658

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