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1. Power Manufacturing has equipment that it purchased 6 years ago for $2,700,000. The equipment was used for a project that was intended to last
1. Power Manufacturing has equipment that it purchased 6 years ago for $2,700,000. The equipment was used for a project that was intended to last for 9 years and was being depreciated over the life of the project. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $990,000 today. The company's tax rate is 40 percent. What is the aftertax salvage value of the equipment?
A. $712,000
B. $864,000
C. $568,000
D. $615,000
E. $936,000
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