You purchased equipment for $500,000 for a project that has a 8 year life. The tax...

 

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You purchased equipment for $500,000 for a project that has a 8 year life. The tax office states that the equipment can be depreciated straight-line to zero over 10 years. You expect to sell the equipment for 60,000 at the end of the project's life. If the tax rate is 30%, what is the expected after tax salvage value at the end of the project's life? You purchased equipment for $500,000 for a project that has a 8 year life. The tax office states that the equipment can be depreciated straight-line to zero over 10 years. You expect to sell the equipment for 60,000 at the end of the project's life. If the tax rate is 30%, what is the expected after tax salvage value at the end of the project's life?

Answer rating: 100% (QA)

To calculate the expected aftertax salvage value at the end of the projects life you can follow thes... View the full answer