Sal v a g e V alu e . Your firm purchased machinery with a 7-year MACRS life for $10 million. The

Sal v a g e V alu e . Your firm purchased machinery with a 7-year MACRS life for $10 million.

The project, however, will end after 5 years. If the equipment can be sold for $4 million at the completion of the project, and your firm’s tax rate is 35 percent, what is the after-tax cash flow from the sale of the machinery?