What is the aftertax salvage value of the equipment

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Problem 1: Power Manufacturing has equipment that it purchased 4 years ago for $2,600,000. The equipment was used for a project that was intended to last for 6 years. However, due to low demand, the project is being shut down. The equipment was depreciated using the straight-line method and can be sold for $410,000 today. The company's tax rate is 34 percent. What is the aftertax salvage value of the equipment?

rev: 06_18_2018_QC_CS-129446

Option 1: $487,633

Option 2: $565,267

Option 3: $410,000

Option 4: $254,733

Option 5: $549,400

 

Reference no: EM132469921

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