7 the shell corp owns a piece of petroleum drilling equipment tha44933
7) The Shell Corp. owns a piece of petroleum drilling equipment that costs$100,000 and will be depreciated by MACRS depreciation with B=$100,000, N=5years, S=$0. There is a combined 50% tax rate. Shell will lease the equipment to others each year and receive $50,000 per year. At the end of 2 years, the firm will sell the equipment for $50,000. If the firm requires a 10% after-tax rate of return,what is the PW of the investment?
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