What is the after tax salvage value

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Reference no: EM131316554

Your firm needs a machine which costs $240,000, and requires $39,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 12%. If this machine can be sold for $24,000 at the end of year 7, what is the after tax salvage value?

Reference no: EM131316554

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