Question: Pear Orchards is evaluating a new project that will require equipment of $217,000. The equipment will be depreciated on a 5 -year MaCRS schedule. The
Pear Orchards is evaluating a new project that will require equipment of $217,000. The equipment will be depreciated on a 5 -year MaCRS schedule. The annual depreciation percentages are 20.00 percent, 32.00 percent, 19.20 percent, 11.52 percent, and 11.52 percent, respectively. The company plans to shut down the project after 4 years. At that time, the equipment could be sold for $46,300. However, the company plans to keep the equipment for a different project in another state. The tax rate is 22 percent. What aftertax saivage value should the company use when evaluating the current project? Maltiple Choice 548,237 $0 $46,300 544.363 537,400
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