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Liberty Services is now at the end of the final year of a project. The equipment originally cost $30,000, of which 85% has been depreciated.

Liberty Services is now at the end of the final year of a project. The equipment originally cost $30,000, of which 85% has been depreciated. The firm can sell the used equipment today for $10,000, and its tax rate is 30%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis?

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