Accounting

Calculate the average number of customers per hour must visit your store before you start making profit
December 25, 2020
Cost Management.
December 25, 2020

Ace Electronics is planning a $150,000 investment in speakers for its business. The speakers will have a 5-year life and a $15,000 salvage value. The company has a required return of 6% and a 30% tax rate. Assuming Ace used straight line depreciation, what is the present value of the tax savings from the depreciation on the speakers?