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a 5 year project requires the initial purchase of a $100000 machine. This machine has an 8 year life and will be depreciated straight-line to

a 5 year project requires the initial purchase of a $100000 machine. This machine has an 8 year life and will be depreciated straight-line to zero. At the end of the project, the equipment can be sold for 20000. The tax rate is 30%. What is the after-tax salvage value?

Possible answers

a) 9950

b) 20000

c) 14750

d) 25250

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