Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $18.4 million, of which 85% has been depreciated. The used equipment can be sold today for $4.6 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. $

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
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Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk
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Net Salvage Value

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $18.4 million, of which 85% has been depreciated. The used equipment can be sold today for $4.6 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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