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please answer all three parts Worksheet on calculating taxes on salvage value nsider the following example: The initial cost of the machine is $50 million
please answer all three parts
Worksheet on calculating taxes on salvage value nsider the following example: The initial cost of the machine is $50 million dollars and has a $12 Illion-dollar salvage value at t=10( Depr. Period =10 years). It will be depreciated at a rate of $3 million. lollars per year. The taxrate is 25%. What is the after-tax salvage value at t=10 ? Calculate the net proceeds from selling the machine at t=10 (net of taxes). 1. Machine costs $10m initially. Salvage Value at t=10 is $3m. Tax rate =25%. Depreciation =$1m/ year. 2. Machine costs $10m initially. Salvage Value at t=10 is $3m. Tax rate =25%. Depreciation =$0.9m/year. 3. Machine costs $10m initually. Salvage Value at t=10 is $3m. Tax rate =4036. Depreclation =$0.5m year Step by Step Solution
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