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The equipment originally cost $ 4 5 , 0 0 0 , of which 7 5 % has been depreciated. The firm can sell the

The equipment originally cost $45,000, of which 75% has been depreciated. The firm can sell the used equipment today for $12,000, and its tax rate is 40%. What is the equipments after-tax salvage value for use in a capital budgeting analysis? (Note that if the equipments final market value is less than its book value, the firm will receive a tax credit as a result of the sale.)

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