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Imagine that you are in the final year of a project. You had originally purchased a machine three years ago for $22,500. It is being
Imagine that you are in the final year of a project. You had originally purchased a machine three years ago for $22,500. It is being fully-depreciated over four years on a straight-line basis. If your company can sell the machine today for $6,000 and its tax rate is 40%, what would the appropriate after-tax salvage value to include in a capital budgeting (capital planning) analysis? (Pick the closest answer as the answers below are rounded.) a. $5,560 b. $5,850 c. $6,140 d. $6,450 e. $6,770
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