Compute the after$-$tax salvage value of equipment $($TV of asset$)$ at the end of the project for the following.

situation:

You are bidding for a contract to sell computers to a small government agency. The contract will be for $380$

computers a year for $5$ years. To be able to produce these computers, you need to invest in $$730$ in equipment. The

equipment has a taxable life of $10$ years and will be depreciated using straight line. At the end of the $5$ years, the

equipment can be sold for $$60($market or serap value$).$ The variable cost of producing the computers is $$20$ per unit

and you will incur in a fixed cost of $$170$ a year. You have estimated you will need $$40$ today in working eapital.

The appropriate discounting rate for this type of projects is $12\%.$ The corporate tax rate applicable to you in this

case is $40\%.$

For your answer, do not enter the dollar sign $($$$),$ DO NOT use commas, and you can round to zero decimals $($the

nearest dollar$).$

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