Question
ABC, Inc purchased some new machinery three years ago for $320,989. Today, it is selling this machinery for $56,416. What is the After-tax Salvage Value
ABC, Inc purchased some new machinery three years ago for $320,989. Today, it is selling this machinery for $56,416. What is the After-tax Salvage Value of the new machinery? Assume that the tax rate is 39%. The MACRS allowance percentages are as follows, starting with Year 1: 20.00, 32.00, 19.20, 11.52, 11.52, and 5.76 percent. Enter your answer rounded off to two decimal points.
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SOLUTION To calculate the aftertax salvage value of the machinery we need to first determine the boo...
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Fundamentals Of Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
13th Edition
1265553602, 978-1265553609
