How large would the salvage value of the aircraft have to be

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Question 1: Buse Corporation is investigating buying a small used aircraft for use by its executives. The aircraft would have a useful life of eight years. The company uses a discount rate of 14 percent in its capital budgeting. The net present value of the investment, excluding the salvage value of the aircraft, is -$488,487. Management is having difficulty estimating the salvage value of the aircraft. To the nearest whole dollar, how large would the salvage value of the aircraft have to be to make the investment in the aircraft financially attractive?

Reference no: EM132581255

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