Question: You are considering a new 4-year project. The assets needed for this new project would cost $2,450,000, and they can be salvaged at $290,000 when

You are considering a new 4-year project. The assets needed for this new project would cost $2,450,000, and they can be salvaged at $290,000 when the new project ends. The assets can all be depreciated based on the 5-year MACRS schedule. So, the depreciation schedule is 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76% in each year respectively. The corporate tax rate is 21%. Calculate the after-tax salvage of the assets for this new project.

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