Question: IU purchased a super computer for $10,000. This computer qualifies for 3-year recovery under MACRS. Use the MARCS Table provided in Lecture 18. IU has

IU purchased a super computer for $10,000. This computer qualifies for 3-year recovery under MACRS. Use the MARCS Table provided in Lecture 18. IU has a tax rate of 20%. Assume that the super computer is sold for $8,000 at the end of year 4. What is the after-tax salvage value?

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