net salvage value
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Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $23 million, of which 80% has been depreciated. The used equipment can be sold today for $8.05 million, and its tax rate is 40%. What is the equipment’s after-tax net salvage value? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
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