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5. (5 Marks) A manufacturing company just bought a new piece of equipment for $1.6 million. It is a class 8 asset. The following
5. (5 Marks) A manufacturing company just bought a new piece of equipment for $1.6 million. It is a class 8 asset. The following information is given: -after-tax annual interest rate = 13% -corporate tax rate = 45% - service life = 15 years -depreciation rate = 30% Calculate the present worth of the equipment's salvage value with tax effects.
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