Question
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of
An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $16,200,000 and will be sold for $3,600,000 at the end of the project.
If the tax rate is 32 percent, what is the aftertax salvage value of the asset?
a. $3,343,795
b. $2,448,000
c. $3,856,205
d. $3,510,985
e. $3,176,605
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Comparative Public Budgeting
Authors: George M Guess
2nd Edition
1316648109, 978-1316648100
