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21 21 24 215 27 212 Question 24 (2.5 points) Ausel's is considering a five-year project that will require $757,680 for new fixed assets
21 21 24 215 27 212 Question 24 (2.5 points) Ausel's is considering a five-year project that will require $757,680 for new fixed assets that will be depreciated straight-line to a zero book value over the five years. At the end of the project, the fixed assets can be sold for 10 percent of their original cost. The project is expected to generate annual sales of $1,075,000 and costs of $875,000. The tax rate is 35 percent and the required rate of return is 10 percent. What is the amount of the aftertax salvage value? $24,473 18 30 $56,858 33 >5 $37,536 $17,594 36 $49,249
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