Steven's is considering a five-year project that will require $840,000 for a new fixed asset that the tax authority indi

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answerhappygod
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Steven's is considering a five-year project that will require $840,000 for a new fixed asset that the tax authority indi

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Steven's is considering a five-year project that will require$840,000 for a new fixed asset that the tax authority indicatesmust be depreciated straight-line to zero over seven years. At theend of the project life of five years, the fixed asset can be soldfor 35% of its original cost. What is the after-tax salvage valuethat should be included in the project’s terminal cash flow if thetaxation rate is 20%?
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