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ABC is considering investing in a machine that will cost $400,575 and will last for 9 years. ABC will close the project at the end
ABC is considering investing in a machine that will cost $400,575 and will last for 9 years. ABC will close the project at the end of year 4 and expects to sell the machine at $214,439. ABC’s new machine will be depreciated straight-line. The firm's average tax rate is 0.17% and its marginal tax rate is 0.26%. The appropriate cost of capital is 8%.
What will be the after-tax salvage value of the machine at the end of year 4 ?
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
