The used equipment can be sold today for 4 million and its


Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $12 million, of which 75% has been depreciated.

The used equipment can be sold today for $4 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value?

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Financial Management: The used equipment can be sold today for 4 million and its
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