Determine what is the equipments after-tax salvage value

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Reference no: EM13333321

Kennedy Air Services is now in the final year of a project. The equipment originally cost $28 million, of which 80% has been depreciated. Kennedy can sell the used equipment today for $7 million, and its tax rate is 40%. What is the equipment's after-tax salvage value?

Reference no: EM13333321

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