GCU - FIN 650 - Allen Air Lines must liquidate some equipment that is being replaced.

Grand Canyon University – FIN 650 – Allen Air Lines must liquidate some equipment that is being replaced.

Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $14.4 million, of which 80% has been depreciated. The used equipment can be sold today for $3.6 million, and its tax rate is 25%. What is the equipment’s after-tax net salvage value? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $