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 $18,540,000 and will be sold for $4,120,000 at the end of the project.

Required:

If the tax rate is 34 percent, what is the aftertax salvage value of the asset?

rev: 09_18_2012

$3,808,462

$2,719,200

$4,431,538

$3,998,885

$3,618,039

MACRS Table http://lectures.mhhe.com/connect/0073382396/Images/table10-7.jpg