What is the expected return of your portfolio if you own 620 shares of Shark, which

$ 714.957,6‬

Explanation:

We should solve for the book value afer four years:

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