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    Equipment's after-tax net salvage value

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    Carter Air Lines is now in the terminal year of a project. The equipment originally cost $20 million, of which 80% has been depreciated. Carter can sell the used equipment today to another airline for $5 million, and its tax rate is 40%. What is the equipment's after-tax net salvage value?

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    https://brainmass.com/business/accounting/equipment-s-after-tax-net-salvage-value-335014

    Solution Preview

    The after tax salvage value is calculated as

    Cost of equipment 20,000,000
    Accumulated ...

    Solution Summary

    The solution explains how to calculate the equipment's after-tax net salvage value

    $2.19

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