The asset has an acquisition cost of 7900000 and will be, Ask an Expert

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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 $7,900,000 and will be sold for $1,400,000 at the end of the project. If the tax rate is 35%, what is the aftertax salvage value of the asset?

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