An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,170,000 and will be sold for $1,370,000 at the end of the project. If the tax rate is 30 percent, what is the aftertax salvage value of the asset? Refer to Table 10.7
Year - 3year
1- 33.3%
2- 44.45
3- 14.81
4- 7.41
5y
1- 20%
2- 32
3- 19.2
4- 11.52
5- 11.52
6- 5.76
7year
1- 14.29
2- 24.49
3- 17.49
4- 12.49
5- 8.93
6- 8.92
7- 8.93
8- 4.46