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Considering a new equipment purchase

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Royal Dutch Petro (RDP) is considering a new equipment purchase that would replace some existing equipment. The old equipment has a Book Value (BV) of $370 thousand and RDP estimates that the equipment could be sold for ONLY $245 thousand. What is the After Tax Salvage Value (ATSV) of the old equipment that RDP should use in their capital budgeting analysis? Assume the tax rate = T= 35%. Answer to 2 decimal points, in units of thousands, thus 15,123 would be 15.12.

Reference no: EM132576435

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