PowerBuilt Construction is considering whether to replace an existing bulldozer with a new model. If the new

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PowerBuilt Construction is considering whether to replace an existing bulldozer with a new model. If the new bulldozer is purchased, the existing bulldozer will be sold to another company for $85,000. The existing bulldozer has a book value equal to $100,000. If PowerBuilt’s marginal tax rate is 35 percent, what will be the net after-tax cash flow that is generated from the disposal of the existing bulldozer?

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Essentials of Managerial Finance

ISBN: 978-0324422702

14th edition

Authors: Scott Besley, Eugene F. Brigham

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