Question
A company is selling off some old equipment it no longer needs. The equipment originally cost $23,750, of which 75% has been depreciated. The firm
A company is selling off some old equipment it no longer needs. The equipment originally cost $23,750, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis?
a. $5,975
b. $6,025
c. $6,150
d. $6,772
e. $5,850
???
A company is selling off some old equipment it no longer needs. The equipment originally cost $23,750, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis?
a. $5,975
b. $6,025
c. $6,150
d. $6,772
e. $5,850
???
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Foundations Of Financial Markets And Institutions
Authors: Frank J. Fabozzi, Franco Modigliani, Michael G. Ferri
2nd Edition
0136860567, 9780136860563
