Answer:
$ 714.957,6
Explanation:
<u>We should solve for the book value afer four years:</u>
3,800,000 x (0.2 + 0.32 + 19.2 + 11.52) =
3,800,000 x 0,8272 = 3.143.360
book value: 3,800,000 - 3,143,360 = 656.640
Now, we compare it against our expected sales value
745,000 - 656,640 = 88,360
This gain will be taxes at 34%
88,360 x 34% = 30.042,4
Now, the after tax salvage value will be :
745,000 - 30,042.4 = 714.957,6
