depreciated using the straight-line method over 8 years. The tax rate is 35 percent and the...
depreciated using the straight-line method over 8 years. The tax rate is 35 percent and the discount rate is 16 percent. If the machine is sold today for $74,500, what will be the after-tax salvage value?
Homework Answers
After-tax salvage value:
= Sale value×(1-Tax rate)
= $74,500×(1-35%)
= $48,425
Hence, After-tax salvage value is $48,425
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