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Net Salvage Value
Question 1: Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $9.2 million, of which 65% has been depreciated. The used equipment can be sold today for $4.6 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
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