ABC is considering investing in a machine that will cost $400,575 and will last for 9 years. ABC will close the project at the end of year 4 and expects to sell the machine at $214,439. ABC’s new machine will be depreciated straight-line. The firm's average tax rate is 0.17% and its marginal tax rate is 0.26%. The appropriate cost of capital is 8%. 

What will be the after-tax salvage value of the machine at the end of year 4 ?

Answer rating: 100% (QA)

To calculate the aftertax salvage value of the machine at the end of year 4 you can follow these ste... View the full answer