Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Liberty Services is now at the end of the final year of a project. The equipment originally cost $125,500, of which 75% has been depreciated.

Liberty Services is now at the end of the final year of a project. The equipment originally cost $125,500, of which 75% has been depreciated. The firm can sell the used equipment today for $44,000, and its tax rate is 30%. What is the equipment's after-tax salvage value for use in capital budgeting analysis? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

New Venture Creation A Framework For Entrepreneurial Start-ups

Authors: Paul Burns

2nd Edition

1352000504, 978-1352000504

More Books

Students also viewed these Finance questions

Question

What does this look like?

Answered: 1 week ago