T Smith

James, Inc. discovered that equipment purchased three years ago for $600,000 will not last as long as originally estimated. The firm was depreciating the equipment at the rate of $80,000 per year with an estimated salvage value of $40,000. New estimates i...

Your company is considering buying a company that is forecasted to have earnings as shown below. Assuming these estimates to be perfectly accurate, what is the present value of this stream of earnings? Assume an interest rate of 5.5% Year 1 $50,000 Year 2...