Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchase equipment for $364,396. This cost will be depreciated straight-line to zero over the projects 3-year life. Based on past information, you believe that

You purchase equipment for $364,396. This cost will be depreciated straight-line to zero over the projects 3-year life. Based on past information, you believe that you can sell the equipment for $28,794 when you are done with it in 3 years. The companys marginal tax rate is 21%.

Calculate the after-tax salvage value.

Round your answer to 2 decimal places (e.g. 125.74632 = 125.75).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sustainability In Energy Business And Finance Approaches And Developments In The Energy Market

Authors: Hasan Dinçer , Serhat Yüksel

1st Edition

3030940500,3030940519

More Books

Students also viewed these Finance questions