Question
An asset used in a 4 year project falls into the 5-year MACRS class for tax purposes. The assets have an acquisition cost of $5,100,000
An asset used in a 4 year project falls into the 5-year MACRS class for tax purposes. The assets have an acquisition cost of $5,100,000 and will be sold for $1,600,000 at the end of the project. If the effective tax rate is 25%, what is the after-tax salvage value of the asset at the end of year 4?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
