What is the after tax salvage value

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Your firm needs a machine which costs $290,000, and requires $44,000 in maintenance for each year of its 5 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 12%. If this machine can be sold for $29,000 at the end of year 5, what is the after tax salvage value?

Reference no: EM132530900

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