LucasArts Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,455, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment’s after-tax salvage value for use in a capital budgeting analysis?
LucasArts Film Co. is selling off some old equipment it no longer
needs because its associated project has come to an end. The equipment originally cost $22,455, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment’s after-tax salvage value for use in a capital budgeting analysis?
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The post LucasArts Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost $22,455, of which 75% has been depreciated. The firm can sell the used equipment today for $6,000, and its tax rate is 40%. What is the equipment’s after-tax salvage value for use in a capital budgeting analysis? appeared first on Superb Professors.
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