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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Solution Summary
The solution explains how to calculate the equipment's after-tax net salvage value
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The after tax salvage value is calculated as
Cost of equipment 20,000,000
Accumulated ...
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