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Problem:

An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $19,902,000 and will be sold for $4,494,000 at the end of the project. If the tax rate is 31 percent, the aftertax salvage value of the asset is $_______.

Note: Explain all calculation and formulas.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91147988

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