Answer:
correct option is C : $3,971
Explanation:
given data
salvage value = $10,000
time = 12 year
rate = 8 %
to find out
what is the present value of the equipment's salvage value
solution
we get here present value of the equipment salvage value that is express as
present value of the equipment = $10000 × Present value of discounting factor
put here value we get
= [tex]\frac{salvage\ value}{(1+rate)^t}[/tex]
= [tex]\frac{10000}{(1+0.08)^{12}}[/tex]
= 3971
so correct option is C : $3,971
