An equipment's with 5 years useful life is with initial cost of $1,000,000.After 5 years, the equipment's useful life will be The equipment's value willbe depreciated linealy. Tax rate = 20% . What is the after tax residual valueof this equipment at the end of 4th year if the equipment was sold at2,000. $ 18200 $ 25700 $20300 $41600

The objective of the question is to calculate the after-tax residual value of the equipment at the…

Answered: An equipment's with 5 years useful life…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 2P

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What is the aftertax salvage value?

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