Company PrestoGro just sold an old piece of equipment for 61.58 million dollars . The equipment's book value is 90.56 millions of dollars. suppose that the company has a 40% marginal tax rate, what's the after-tax salvage value of the equipment, in millions of dollars?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Company PrestoGro just sold an old piece of equipment for 61.58 million dollars . The equipment's book value is 90.56 millions of dollars. suppose that the company has a 40% marginal tax rate, what's the after-tax salvage value of the equipment, in millions of dollars?

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After tax salvage value will be sale value less taxes paid due to gain on sale or plus tax savings due to loss on sale.

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