An Asset Used in a Three-Year Project Falls in the Three-Year

question 29

Multiple Choice

An asset used in a three-year project falls in the three-year MACRS class for tax purposes.The MACRS percentage rates tarting with Year 1 are: 33.33,44.45,14.81,and 7.41.The asset has an acquisition cost of $2.6 million and will be sold for $1.1 million at the end of the project.If the tax rate is 34 percent,what is the aftertax salvage value of the asset?

• A)$742,519.10
• B)$726,000.00
• C)$832,056.60
• D)$791,504.40
• E)$887,560.15

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A planned series of activities designed to achieve a specific goal, often used in marketing to promote products or services.

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The act of assessing or reviewing something systematically to determine its value, quality, or importance.

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