Project falls in the five-year MACRS class for tax purposes

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Reference no: EM13950192

An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $8,500,000 and will be sold for $1,890,000 at the end of the project.

Required:

If the tax rate is 30 percent, what is the aftertax salvage value of the asset?

Reference no: EM13950192

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