Question
The equipment necessary for a 4 year project will cost $3,050,000 and can be sold for $670,000 at the end of the project. The asset
The equipment necessary for a 4 year project will cost $3,050,000 and can be sold for $670,000 at the end of the project. The asset is in the 5-year MACRS class. The depreciation percentage each year is 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%, respectively. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?
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Foundations of Finance The Logic and Practice of Financial Management
Authors: Arthur J. Keown, John D. Martin, J. William Petty
8th edition
132994879, 978-0132994873
