Question
An asset used in a four-year project falls in the 5 year MACRS class for tax purposes. The asset has an acquisition cost of $7,100,000
An asset used in a four-year project falls in the 5 year MACRS class for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,400,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset?
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
