What is the after-tax salvage value

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Consider a new plant that costs $1,500,000 and is depreciated straight-line to zero over its 5-year tax life. The asset is to be used in a five-year project. At the end of the project the asset can be sold for $200,000. The tax rate is 28%. What is the after-tax salvage value?

Reference no: EM132185345

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