Question: - Question 22 (1 point) Leisure Vacations is considering a 5-year project which will require the purchase of $1.4 million in new 5-Year MACRS equipment
- Question 22 (1 point) Leisure Vacations is considering a 5-year project which will require the purchase of $1.4 million in new 5-Year MACRS equipment The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The firm desires a minimal 14 percent rate of return and the tax rate is 34 percent. The equipment can be sold at the end of the project for an estimated $225,000. What is the amount of the after-tax salvage value? $147,600 $162,418 O 595,322 $144,238 $175,917
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