Calculating salvage value an asset used in a four-year


Question: Calculating Salvage Value. An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $7,100,000 and will be sold for $1,460,000 at the end of the project. If the tax rate is 34 percent, what is the aftertax salvage value of the asset?

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Finance Basics: Calculating salvage value an asset used in a four-year
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