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elbthwtkns01 elbthwtkns01
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4 years ago
Year 0Year 1Year 2Year 3
MACRS
Depreciation Rate33.33%44.45%14.81%7.41%

A machine is purchased for $500,000 and is used through the end of Year 2.  The machine will be depreciated using the 3-Year MACRS schedule.  At the end of Year 2, the machine is sold for $75,000.  What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 40%?

▸ $37,950

▸ $37,050

▸ $59,820

▸ $15,180
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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shawntageshawntage
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4 years ago
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elbthwtkns01 Author
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4 years ago
this is exactly what I needed
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Correct Slight Smile TY
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2 hours ago
Brilliant
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