Problem: After tax salvage value
Karsted Air Services is now in the final year of a project. The equipment originally cost $28 million, of which 80% has been depreciated. Karsted can sell the used equipment today for $7 million, and its tax rate is 30%. What is the equipment's after-tax salvage value? Round your answer to the nearest dollar. Write out your answer completely. For example, 13 million should be entered as 13,000,000.