A manufacturing company just bought a new piece of equipment for $1 million. It is a class 8 asset. The following information is given:
- after-tax annual interest rate = 8%
- corporate tax rate = 36%
- service life = 10 years
- historic depreciation rate = 25%
Calculate the present worth of the equipment's salvage value with tax effects.

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The Answer of A manufacturing company just bought a new piece of equipment for $1 million. It is a class 8 asset. The following information is given:
- after-tax annual interest rate = 8%
- corporate tax rate = 36%
- service life = 10 years
- historic depreciation rate = 25%
Calculate the present worth of the equipment's salvage value with tax effects.

A Manufacturing Company Just Bought a New Piece of Equipment