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Aggie Grill is considering the purchase of an $8,000,000 flat-top grill. The grill has an economic life of 6 years and will be fully depreciated
Aggie Grill is considering the purchase of an $8,000,000 flat-top grill. The grill has an economic life of 6 years and will be fully depreciated using the straight-line method. The grill is expected to produce 550,000 tacos per year for the next 6 years, with each costing $3.50 to make and priced at $8. Assume the discount rate is 10% and the tax rate is 21%. The restaurant expects the market value of the grill to be $0, 6 years from now. Calculate the after-tax salvage value at the end of year 6. (Round to 2 decimals)
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