Project Altron has a required return on 9.25% and cash flows of -$107,000, $32,600, $35,900, $43,400, and $35,900 for Ye
Posted: Sun Jul 03, 2022 12:53 pm
Smith's is considering a four-year project that will require $660,000 for a new fixed asset that the tax authority indicates must be depreciated straight-line to zero over six years. At the end of the project life of four years, the fixed asset can be sold for 40% of its original cost. What is the after-tax salvage value that should be included in the project's terminal cash flow if the taxation rate is 20%? [Note: Enter your answer as a numeric to the nearest US$ and do not include the US$ sign]