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Steven's is considering a five-year project that will require $840,000 for a new fixed asset that the tax authority indicates must be depreciated straight-line to
Steven's is considering a five-year project that will require $840,000 for a new fixed asset that the tax authority indicates must be depreciated straight-line to zero over seven years. At the end of the project life of five years, the fixed asset can be sold for 35% of its original cost. What is the after-tax salvage value that should be included in the projects terminal cash flow if the taxation rate is 20%?
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