2 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 $5.7 million and will be sold for $1.8 million at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? 3 4 Input area: 5 6 Acquisition costs 7 Pretax salvage value 8 Tax rate 9 MACRS depreciation rates Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 $5,700,000 $1,800,000 19 Output area: 20 21 Book value 22 Aftertax cash flow 23 24 21% 10 11 12 13 14 15 16 17 (Use cells A6 to B15 from the given information to complete this question.) 18 0.2000 0.3200 0.1920 0.1152 0.1152 0.0576

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 $5.7 million and will be sold for $1.8 million at the end of the project. If the tax rate is 21 percent, what is the aftertax salvage value of the asset? (Use cells A6 to B15 from the given information to complete this question.)