What is the after-tax salvage value of the old machine

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Reference no: EM131020131

Waterford Industries is considering the purchase of a new machine. It will replace an existing but obsolete machine that will be sold for $50,000. The existing machine is 8 years old, cost $200,000, had a 10-year useful life, and is being depreciated to zero using the straight-line method. Waterford's income tax rate is 35%. What is the after-tax salvage value of the old machine? (Please show me how to work the problem!)

Reference no: EM131020131

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