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You buy PP&E today for $ 1 0 million. You depreciate this asset straight line for 1 0 years. However, in year 8 you sell

You buy PP&E today for $

10

million. You depreciate this asset straight line for

10

years. However, in year

8

you sell the asset for $

7

million. What is the Salvage Value net of tax

(

SVNOT

)

is the tax rate is

21 % ?

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