An asset used in a 4-year project is depreciated at 20 per cent reducing balance for tax

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An asset used in a 4-year project is depreciated at 20 per cent reducing balance for tax purposes. The asset has an acquisition cost of £9,300,000 and will be sold for £3,100,000 at the end of the project. If the tax rate is 28 per cent, what is the after-tax salvage value of the asset?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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