If the lathe can be sold for 6000 at the end of year 3 what


Your firm needs a computerized machine tool lathe which costs $60,000 and requires $13,000 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 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 $6,000 at the end of year 3, what is the after-tax salvage value? (Round your answer to 2 decimal places.)

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the lathe can be sold for 6000 at the end of year 3 what
Reference No:- TGS01584077

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)