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 Table) 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 Table) for tax purposes. The asset has an acquisition cost of $8,200,000 and will be sold for $1,860,000 at the end of the project.

Required:

If the tax rate is 40 percent, what is the aftertax salvage value of the asset? (Do not include the dollar sign ($). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations.Round your answer to 2 decimal places (e.g., 32.16).)

Aftertax salvage value

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