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Dallas Engineering purchased a machine five years ago at a cost of $484,000. The machine is being depreciated using the straight-line method over eight years.
Dallas Engineering purchased a machine five years ago at a cost of $484,000. The machine is being depreciated using the straight-line method over eight years. The tax rate is 25 percent and the discount rate is 13 percent. If the machine is sold today for $209,000, what will the aftertax salvage value be?
$202,125
$227,485
$214,500
$194,000
$186,775
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