Week 3 problems problem 6-2 calculating project npv the best
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 $6,190,000 and will be sold for $1,390,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset? Refer to MACRS schedule(Do not round intermediate calculationsand round your answer to 2 decimal places. Enter your answer in dollars, not millions of dollars, i.e. 1,234,567.)
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