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Summer Tyme, Inc., is considering a new 3 -year expansion project that requires an initial fixed asset investment of $811,363. The fixed asset will be
Summer Tyme, Inc., is considering a new 3 -year expansion project that requires an initial fixed asset investment of $811,363. The fixed asset will be depreciated straight-line to 28,442 over its 3 -year tax life, after which time it will have a market value of $86,849. The project requires an initial investment in net working capital of $46,324. The project is estimated to generate $183,018 in annual sales, with costs of $131,490. The tax rate is 0.28 and the required return on the project is 0.13. What is the aftertax salvage value in year 3 ? (Make sure you enter the number with the appropriate +/ - sign)
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