Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has
Fantastic news! We've Found the answer you've been seeking!
Question:
Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the following rates. The firm expects to operate the machine for 4 years and then to sell it for $12,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 4?
| Depreciation |
Year | Rate |
1 | 0.20 |
2 | 0.32 |
3 | 0.19 |
4 | 0.12 |
5 | 0.11 |
6 | 0.06 |
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Posted Date: