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Your firm needs a computerized machine tool lathe which costs $54,000 and requires $12, 400 in maintenance for each year of its 3-year life After
Your firm needs a computerized machine tool lathe which costs $54,000 and requires $12, 400 in maintenance for each year of its 3-year life After three years, this machine will be replaced The machine falls into the 3-year class, life category. Assume a tax rate of 35 percent and a discount rate of 11 percent. If the lathe can be sold for $5, 400 at the end of year 3, what is the after-tax salvage value? Salvage value after tax $
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