Question
Brummitt Corporation, is evaluating a new 4-year project. The equipment necessary for the project will cost $3,000,000 and can be sold for $321,000 at the
Brummitt Corporation, is evaluating a new 4-year project. The equipment necessary for the project will cost $3,000,000 and can be sold for $321,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company's tax rate is 24 percent. What is the aftertax salvage value of the equipment?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
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