Question: Please show all work. Thanks for your help!! Problem An asset used in a four-year project falls in the five-year MACRS class for tax purposes.

Please show all work. Thanks for your help!!

Please show all work. Thanks for your help!! Problem An asset used

Problem An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,100,000 and will be sold for $1,300,000 at the end of the project. If the tax rate is 27%, what is the after-tax salvage value of the asset? MACRS Depreciation: \begin{tabular}{|r|r|r|r|} \hline & 3 year class & 5 year class & 7 year class \\ \hline 1 & 33.33% & 20.00% & 14.29% \\ \hline 2 & 44.45% & 32.00% & 24.49% \\ \hline 3 & 14.81% & 19.20% & 17.49% \\ \hline 4 & 7.41% & 11.52% & 12.49% \\ \hline 5 & & 11.52% & 8.93% \\ \hline 6 & & 5.76% & 8.92% \\ \hline 7 & & & 8.93% \\ \hline 8 & & & 4.46% \\ \hline \end{tabular}

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