Question: Leisure Vacations is considering a 5-year project which will require the purchase of $1.4 million in new 5-Year MACRS equipment The MACRS rates are 20

Leisure Vacations is considering a 5-year project which will require the purchase of $1.4 million in new 5-Year MACRS equipment The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The firm desires a minimal 14 percent rate of return and the tax rate is 34 percent. The equipment can be sold at the end of the project for an estimated $225,000. What is the amount of the aftertax salvage value? Select one: a. $95,322.15 b. $162,418.54 c. $147,600.00 d. $175,917.60 e. $144,238.97

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