What is the amount of the after-tax salvage


Ausel’s is considering a seven-year project that will require $248,230 for new fixed assets. The fixed assets will be depreciated using three-year MACRS percentages. The percentages are 0.3333, 0.4445, 0.1481 and 0.0741 for year 1 to year 4 respectively. At the end of the project, the fixed assets can be sold for $20,570 (this is the salvage). The tax rate is 39 percent.

What is the amount of the after-tax salvage value?

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Financial Management: What is the amount of the after-tax salvage
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