Estimate the approximate after-tax rate of return (ROR) for a project that has a before-tax ROR of

Question:

Estimate the approximate after-tax rate of return (ROR) for a project that has a before-tax ROR of 24%. Assume that the company has an effective tax rate of 35% and it uses MACRS depreciation for an asset that has a $27,000 .

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...