What is the after-tax salvage value of the asset

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1. Monthly loan payment) Best Buy has a flat-screen HDTV on sale for $2,500. If you could borrow that amount from Carl's Credit Union at 12% for 1 year, what would be your monthly loan payments?

2. An asset used in four-year projects falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,000,000 and will be sold for $2,000,000 at the end of the project. If the tax rate is 34 percent, what is the after-tax salvage value of the asset. 1) $1,320,00 2) 1,932,250 3) $2,000,00 4) $1.672,510.

Reference no: EM131980793

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