Williams services is now in the final year of a project. The equipment originally cost $10m of which 60% has been depreciated. Williams can sell the equipment today for $6m and its tax rate is 40%. What is the equipment's after tax salvage value?

Williams services is now in the final year of a project. The equipment originally cost $10m of which 60% has been depreciated. Williams can sell the equipment today for $6m and its tax rate is 40%. What is the equipment's after tax salvage value?

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

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Ef 626.

Williams services is now in the final year of a project. The equipment originally cost
$10m of which 60% has been depreciated. Williams can sell the equipment today for
$6m and its tax rate is 40%. What is the equipment's after tax salvage value?

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