Question: 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

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 $7,900,000 and will be sold for $1,400,000 at the end of the project. If the tax rate is 35 percent, compute after-tax salvage value of the asset.

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