ABC Company is considering the purchase of a new machine for $64,000 installed.  The machine will be depreciated by MACRS as 5 year property.  The firm expects to operate the machine for 4 years and then to sell it for $12,750.  If the marginal tax rate is 25.00%, what will the after-tax salvage value be when the machine is sold at the end of Year 4?

Answer rating: 100% (QA)

To calculate the aftertax salvage value we first need to calculate the depreciation each year using ... View the full answer