Class], [Year, Three-Year, Five-Year, Seven - Year ],[1,33.33%, 20.00 %, 14.29% The asset has an acquisition cost of $6,020,000 and will be sold for $ 1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations. Round your answer to the nearest whole dollar. Enter your answer in dollars, not millions of dollars, e. g. 1,234, 567.
Class], [Year, Three-Year, Five-Year, Seven - Year ],[1,33.33%, 20.00 %, 14.29% The asset has an acquisition cost of $6,020,000 and will be sold for $ 1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7. (Do not round intermediate calculations. Round your answer to the nearest whole dollar. Enter your answer in dollars, not millions of dollars, e. g. 1,234, 567.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
![An asset used in a four-year project falls in the five-
year MACRS class for tax purposes.\table[[Property
Class], [Year, Three-Year, Five Year, Seven - Year
],[1,33.33%, 20.00 %, 14.29% The asset has an
acquisition cost of $6,020,000 and will be sold for $
1,220,000 at the end of the project. If the tax rate is 35
percent, what is the aftertax salvage value of the asset?
Refer to Table 10.7. (Do not round intermediate
calculations. Round your answer to the nearest whole
dollar. Enter your answer in dollars, not millions of
dollars, e. g. 1,234,567.
Property Class
Year
Three-Year
Five-Year
Seven-Year
1
33.33%
20.00%
14.29%
23
2
44.45
32.00
24.49
3
14.81
19.20
17.49
4
7.41
11.52
12.49
5
11.52
8.93
69
5.76
8.92
8.93
8
4.46](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F533ccd15-a16f-4b58-9d8f-3cda2aaf6051%2F623d0b25-a2a7-40ac-aab9-ed9e2b36259d%2Fyz63lpf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:An asset used in a four-year project falls in the five-
year MACRS class for tax purposes.\table[[Property
Class], [Year, Three-Year, Five Year, Seven - Year
],[1,33.33%, 20.00 %, 14.29% The asset has an
acquisition cost of $6,020,000 and will be sold for $
1,220,000 at the end of the project. If the tax rate is 35
percent, what is the aftertax salvage value of the asset?
Refer to Table 10.7. (Do not round intermediate
calculations. Round your answer to the nearest whole
dollar. Enter your answer in dollars, not millions of
dollars, e. g. 1,234,567.
Property Class
Year
Three-Year
Five-Year
Seven-Year
1
33.33%
20.00%
14.29%
23
2
44.45
32.00
24.49
3
14.81
19.20
17.49
4
7.41
11.52
12.49
5
11.52
8.93
69
5.76
8.92
8.93
8
4.46
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