Aftertax salvage value of the asset


An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,600,000 and will be sold for $1,900,000 at the end of the project.

If the tax rate is 40 percent, what is the aftertax salvage value of the asset?

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Finance Basics: Aftertax salvage value of the asset
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