Question
A piece of newly purchased industrial equipment costs $948,000. Assume the equipment is classified as five-year property under MACRS. The equipment is to be used
A piece of newly purchased industrial equipment costs $948,000. Assume the equipment is classified as five-year property under MACRS.
The equipment is to be used in a five-year project. The relevant income tax rate is 22 percent, and the capital gains tax rate is 15 percent. If the equipment can be sold for $80,000 at the end of its project life, what is the after-tax salvage value from the sale of this equipment?
The equipment is to be used in a five-year project. The relevant income tax rate is 22 percent, and the capital gains tax rate is 15 percent. If the equipment can be sold for $35,000 at the end of its project life, what is the after-tax salvage value from the sale of this equipment?
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Practical Financial Management
Authors: William R. Lasher
6th Edition
1439080496, 978-1439080498
