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Impressive Services is now at the end of the final year of a project. The equipment originally cost $80,000, of which 90% has been depreciated.
Impressive Services is now at the end of the final year of a project. The equipment originally cost $80,000, of which 90% has been depreciated. The firm can sell the used equipment today for $5,000, and its tax rate is 22%. What is the equipments after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.
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