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The manufacturing plant is an eight-year project, and DEI uses 7-year MACRS to depreciate the plant to a book value of zero. At the end
The manufacturing plant is an eight-year project, and DEI uses 7-year MACRS to depreciate the plant to a book value of zero. At the end of the project, the plant can be scrapped for $ 0.2 million. What is the aftertax salvage value of this manufacturing plant? Property Class Year 3-year 5-year 7-year 1 33.33% 20.00% 14.29% 2 44.45% 32.00% 24.49% 3 14.81% 19.20% 17.49% 4 7.41% 11.52% 12.49% 5 11.52% 8.93% 6 5.76% 8.92% 7 8.93% 8 4.46% Total 100.00% 100.00% 100.00%
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