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What is the after-tax salvage value

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Reference no: EM132477989

You are tasked to determine the after-tax salvage value of a piece of equipment for the Company you are interning with. The Controller gives you the following information:

- The equipment was purchased for $5 million

- A third party has offered to buy the equipment for $3 million after three years of operation

- Your depreciation method is 4 years straight line

- The tax rate is 21%

What is the after-tax salvage value (after tax proceeds from the sale)?

Reference no: EM132477989

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