Question
8 years ago, a new machine cost $9,000,000 to purchase and an additional $630,000 for the installation. The machine was to be linearly depreciated to
8 years ago, a new machine cost $9,000,000 to purchase and an additional $630,000 for the installation. The machine was to be linearly depreciated to zero over 20 years.
The company has just sold the machine for $5,400,000, and its marginal tax rate is 25%.
What is the annual depreciation?
What is the current book value?
What is the after-tax salvage value?
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Financial Institutions Management
Authors: Anthony Saunders, Marcia Cornett
8th Edition
0078034809, 978-0078034800
