Question: Keyser Mining is considering a project that will require the purchase of $ 8 8 0 , 0 0 0 in new equipment. The equipment

Keyser Mining is considering a project that will require the purchase of $880,000 in new equipment. The equipment will be depreciated straight-line to a zero book value over the 7-year life of the project. At the end of the project, the sold the equipment for $44000. The required return is 16 percent, and the tax rate is 35 percent. What is the amount of the after-tax salvage value of the equipment at the end of year 7?

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