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Liberty Services Is Now at the End of the Final

question 5

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Liberty Services is now at the end of the final year of a project.The equipment was purchased prior to the new tax law and originally cost $20,000,of which 75% has been depreciated.The firm can sell the used equipment today for $6,000,and its tax rate is 25%.What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book value,the firm will receive a tax credit as a result of the sale that will offset income from the company's other projects.


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Sigmund Freud, an Austrian neurologist known for founding the discipline of psychoanalysis, focusing on unconscious drives and conflicts.

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