Question: Southwest Airlines just bought a new jet for $ 2 4 , 0 0 0 , 0 0 0 . The jet falls into the

Southwest Airlines just bought a new jet for $24,000,000. The jet falls into the 7-year MACRS category, with the following depreciation rates (half-year convention):
Year 12345678
Depr.
rate 14.29%24.49%17.49%12.49%8.93%8.92%8.93%4.46%
The jet can be sold for $19,200,000 after 5 years. The company has a marginal tax rate of 34%.
What is the book value at the end of year 5?
What is the after-tax salvage value at the end of year 5?

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