What is the aftertax salvage value

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Reference no: EM131063474

A 5-year project requires the initial purchase of a $345,000 machine. This machine has a 6-year life and will be depreciated straight-line to zero. At the end of the project, the equipment can be sold for $79,000. The tax rate is 35 percent. What is the aftertax salvage value?

$78,875

$71,475

$86,525

$68,500

Reference no: EM131063474

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