Intro 8 years ago, a new machine cost $5 million to purchase and an additional $470,000 for the installation. The machine was to be linearly depreciated to zero over 10 years. The company has just sold the machine for $3 million, and its marginal tax rate is 25%. Attempt 1/10 for 10 pts. Part 1 What is the annual depreciation? 0+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. What is the current book value? 0+ decimals Submit Part 3 B Attempt 1/10 for 10 pts. What is the after-tax salvage value? 0+ decimals Submit Problem 7 Intro Southwest Airlines just bought a new jet for $32,000,000. The jet falls into the 7- year MACRS category, with the following depreciation rates (half-year convention): Year 1 2 3 4 5 6 7 8 Depr. rate 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% The jet can be sold for $25,600,000 after 5 years. The company has a marginal tax rate of 34%. LB Attempt 1/10 for 10 pts. Part 1 What is the book value at the end of year 5? 0+ decimals Submit Part 2 B Attempt 1/10 for 10 pts. What is the after-tax salvage value at the end of year 5? 0+ decimals Submit About Blog Contact Instructor Guide Privacy Policy