Question: Charles is considering purchasing a new mainframe computer for his business for $460,000. It will be fully depreciated in 5 years, but Charles thinks he

Charles is considering purchasing a new mainframe computer for his business for $460,000. It will be fully depreciated in 5 years, but Charles thinks he will be able to sell it for $40,000 in 6 years when he is done with it. If Charles's marginal tax rate is 22%, what after-tax salavage value should he use in year 6 when estimating the project's cash flows?

Multiple Choice $48,067 $40,000 $8,800 $31,200 $48,800

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