PLEASE SOLVE WITH ALL WORK SHOWN

year. The tax rate is 25%. What is the after-tax salvage value at t=10 ? Answer: Accumulated depreciation at time of sale =103=30 Book value = Initial cost- Accumulated depreciation =5030=20 Taxable gain/loss = Salvage value Book value =1220=8 After tax salvage value = Salvage value Tax on Sale =12.25(8)=14 Calculate the net proceeds from selling the machine at t=10 (net of taxes). 1. Machine costs $10m initially. Salvage Value at t=10 is $3m. Tax rate =25%. Depreciation =$1m/ year. 2. Machine costs $10m initially. Salvage Value at t=10 is $3m. Tax rate =25%. Depreciation =$0.9m/ year. 3. Machine costs $10m initially. Salvage Value at t=10 is $3m. Tax rate =40%. Depreciation =$0.5m/ year