Question: Problem 9-7 Calculating Salvage Value [LO 2] An asset used in a four-year project falls in the five-year MACRS class (MACRS schedule) for tax purposes.

Problem 9-7 Calculating Salvage Value [LO 2] An asset used in a four-year project falls in the five-year MACRS class (MACRS schedule) for tax purposes. The asset has an acquisition cost of $8,800,000 and will be sold for $2,260,000 at the end of the project. If the tax rate is 25 percent, what is the aftertax salvage value of the asset? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32

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