What is the after-tax savage salvage value

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Your firm needs machine which costs $170,000, and requires 32,000 in maintenance for each year of its 5 year life. After three years this machine will be replaced. The machine falls into the Macrs-5 class life category. Assume a tax rate of 30% and a discount rate of 16%. If this machine can be sold for 17,000 the end of year five what is the after-tax savage salvage value?

Reference no: EM132125135

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