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An asset used in a four-year project falls in the five-year MACRS class (MACRS Table) for tax purposes. The asset has an acqu

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Answer #1
Book value = (purchase price)*(1-sum of MACR rates from beginning to current date)
= (7400000)*(1-0.2-0.32-0.192-0.1152)
= 1278720
After tax salvage value = selling price*(1-tax rate)+book value*tax rate
=1700000*(1-0.21)+1278720*0.21
=1611531
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