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An asset used in a 3-year project falls into 5 year MACRS class for tax purposes. The asset has an acquisition cost of $5,000,000 and
An asset used in a 3-year project falls into 5 year MACRS class for tax purposes. The asset has an acquisition cost of $5,000,000 and will be sold for $1,500,000 at the end of the project. With a 25 percent tax rate, what is the after-tax salvage value of the asset? (9 points) Year 1 2 3 4 5 6 MACRS 20.00% 32.00% 19.20% 11.52% 11.52% 5.76%
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