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Homework answers / question archive / Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced
Net Salvage Value Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $9 million, of which 80% has been depreciated. The used equipment can be sold today for $3 million, and its tax rate is 25%. What is the equipment's after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.
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