Question
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $8,100,000 and
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $8,100,000 and will be sold for $1,980,000 at the end of the project. If the tax rate is 23 percent, what is the after-tax salvage value of the asset?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the aftertax salvage value of the asset we need to follow these steps 1 Calculate the t...
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Step: 2
Step: 3
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
