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A project requires $1.208 million in new equipment that will be depreciated straight-line to zero over the 5-year life of the project. The firm expects
A project requires $1.208 million in new equipment that will be depreciated straight-line to zero over the 5-year life of the project. The firm expects to sell the equipment at the end of the project for 20 percent of its original cost. The discount rate is 13 percent and the tax rate is 35 percent. What is the aftertax salvage value of the equipment?
Multiple Choice
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$167,400
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$157,040
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$148,900
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$174,000
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$168,800
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