3.

QUESTION 3 Hilden Co. is considering a five-year project that will require 5750,000 for new foxed assets that will be depreciated straight line to a zero book value over 5 years. No bonus depreciation will be taken. At the end of the project, the fixed assets can be sold for $300,000. The project is expected to generate annual sales of $700,000 with costs of $350,000. The tax rate is 21 percent and the required rate of return is 12.5 percent. What is the amount of the after tax salvage value? A. $431,462 OB. 5237,000 OC. 5632,000 OD. 5276,500 O E $553,000