The present worth of the salvage value with tax effects

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Suppose that first cost of an asset is $1 million, the depreciation rate is 10%, service life is 10 years, the tax rate is 35% , the CCA rate is 30% and the after-tax interest rate is 15%. In this case, the present worth of the salvage value with tax effects incorporated is

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Reference no: EM132008481

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