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8 years ago, a new machine cost $7,000,000 to purchase and an additional $640,000 for the installation. The machine was to be linearly depreciated to
8 years ago, a new machine cost $7,000,000 to purchase and an additional $640,000 for the installation. The machine was to be linearly depreciated to zero over 10 years. The company has just sold the machine for $4,200,000, and its marginal tax rate is 25%.
What is the current book value?
What is the after-tax salvage value?
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