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Your firm is planning on purchasing a new tractor for an ongoing project that has 4 years left. One board member keeps raising issue with
Your firm is planning on purchasing a new tractor for an ongoing project that has 4 years left. One board member keeps raising issue with this purchase, stating that it is a waste of money to buy such a long-term asset for such a short-term project. Compute the net after tax salvage value of this tractor using the details below. - Purchase price of the tractor =$180,000 (purchased now) - Training costs to train employees =$4,000 - Shipping costs =$20,000 - Asset and capital expenditures depreciated straight line over 10 years to a value of $20,000 - Salvage value of the tractor in four years (estimated) =$100,000 - The firm's tax rate is 23% Provide your answer in dollars without the $
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