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Liberty Services is now at the end of the final year of a project. The equipment originally cost $20.000, of which 75% has been depreciated.

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Liberty Services is now at the end of the final year of a project. The equipment originally cost $20.000, of which 75% has been depreciated. The firm can sell the used equipment today for $7,500, and its tax rate is 40%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? \begin{tabular}{|l} $,500 \\ $5.550 \\ $.625 \\ $55.850 \\ $56,150 \end{tabular}

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