An asset used in a four-year project falls in the five-year MACRS class for tax purposes....
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An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,500,000 and will be sold for $1,600,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Acquisition costs Pretax salvage value SS 6,500,000 $ 1,600,000 Tax rate 21% MACRS percentages Year 1 0.2000 Year 2 0.3200 Year 3 0.1920 Year 4 0.1152 An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,500,000 and will be sold for $1,600,000 at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? Acquisition costs Pretax salvage value SS 6,500,000 $ 1,600,000 Tax rate 21% MACRS percentages Year 1 0.2000 Year 2 0.3200 Year 3 0.1920 Year 4 0.1152
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