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Calculating Salvage Value- An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost

Calculating Salvage Value- 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 $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 after-tax salvage value of the asset?

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