Williams services is now in the final year of a project. The equipment originally cost $10m of which 60% has been depreciated. Williams can sell the equipment today for $6m and its tax rate is 40%. What is the equipment's after tax salvage value?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ef 626.

Williams services is now in the final year of a project. The equipment originally cost
$10m of which 60% has been depreciated. Williams can sell the equipment today for
$6m and its tax rate is 40%. What is the equipment's after tax salvage value?
Transcribed Image Text:Williams services is now in the final year of a project. The equipment originally cost $10m of which 60% has been depreciated. Williams can sell the equipment today for $6m and its tax rate is 40%. What is the equipment's after tax salvage value?
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