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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

???

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