Question
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $587952 is estimated to result
Purple Haze Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $587952 is estimated to result in $226646 in annual pretax cost savings. The press falls in the MACRS five-year class, and it will have a salvage value at the end of the project of $92507. The shop's tax rate is 30 percent. What is the after tax salvage value of this asset? (Round your final answer to the nearest dollar amount. Omit the "$" sign and commas in your response. For example, $123,456.78 should be entered as 123457.)
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