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Liberty Services is now at the end of the final year of a project. The equipment originally cost $28,500, of which 80% has been depreciated.
Liberty Services is now at the end of the final year of a project. The equipment originally cost $28,500, of which 80% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment's 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. \begin{tabular}{|} $6,772 \\ $5,880 \\ $5,558 \\ $6,450 \\ $5,750 \end{tabular}
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