What is the after-tax investment value

Reference no: EM13683920

A corporation purchased a machine for $60,000 five years ago. It had an estimated life of 10 years and an estimated salvage value of $9,000. The current book value of this machine is $12,500. If the current market value is $30,000 and the effective income tax rate is 38 percent, what is the after-tax investment value (rounded to the nearest whole dollar) of the machine? Utilize the outsider viewpoint. The after-tax MARR is 10 percent per year.

Reference no: EM13683920

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