how do I calculate this after tax cash flow from salvage? tax is 35% salvage value...

how do I calculate this after tax cash flow from salvage?

tax is 35%
salvage value is $4,800,000

Expert Solution

Salvage value = 4,800,000

tax = 35%

tax amount = 4,800,000 * 0.35 = 1,680,000

After tax cash flow from salvage = Salvagevalue - tax

After tax cash flow from salvage = 4,800,000 - 1,680,000 = 3,120,000

Salvage value means the value of asset at the time sale of asset. salvage value is identified after deducting the every year depreciation of the asset. at the end of the life of asset what ever may be sale value that is treated as savage value of asset.

ekkarill92 answered 2 years ago

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