question archive Equipment originally cost $20,000, of which 55% has been depreciated
Equipment originally cost $20,000, of which 55% has been depreciated
Subject:FinancePrice: Bought3
Equipment originally cost $20,000, of which 55% has been depreciated. The firm can sell the used equipment today for $5,000, and its tax rate is 21%. What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value, the firm will receive a tax credit as a result of the sale.
