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A piece of newly purchased industrial equipment costs $948,000. Assume the equipment is classified as five-year...

A piece of newly purchased industrial equipment costs $948,000. Assume the equipment is classified as five-year property under MACRS. The equipment is to be used in a five-year project. The relevant income tax rate is 22 percent, and the capital gains tax rate is 15 percent.

If the equipment can be sold for $80,000 at the end of its project life, what is the after-tax salvage value from the sale of this equipment?

$65,182

$74,413

$54,246

$80,000

$82,315

If the equipment can be sold for $35,000 at the end of its project life, what is the after-tax salvage value from the sale of this equipment?

$35,000

$44,964

$42,786

$57,892

$39,313

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