2. In order to raise some of the money you need to pursue this project, your firm is considering selling some of its existing machinery. It initially acquired the equipment for $30 million and has owned it for five years. It was able to deduct 30% of the equipment's value as bonus depreciation in the first year that it operated, and has deducted 10% a year in each of the four years since. What is the current book value of the machinery? If it manages to sell the equipment for $23 million this year (considering the 20% tax rate that it pays) how much money will the sale of the equipment generate for the firm?

In order to raise some of the money you need to pursue this project, your firm is considering selling some of its existing machinery. It initially acquired the equipment for $30 million and has owned it for five years. It was able to deduct 30% of the equipment's value as bonus depreciation in the first year that it operated, and has deducted 10% a year in each of the four years since. What is the current book value of the machinery? If it manages to sell the equipment for $23 million this year (considering the 20% tax rate that it pays) how much money will the sale of the equipment generate for the firm? You are a manager in a firm that produces tractors and high-end agricultural equipment. Your company is deciding whether to pursue the development of a line of self-driving ploughs, which would be able to till large fields without the need for a farmer to be physically present in the cabin. Developing this technology would require a substantial initial investment of $80 million right away in new capital equipment. In order to raise some of the money you need to pursue this project, your firm is considering selling some of its existing machinery. It initially acquired the equipment for $30 million and has owned it for five years. It was able to deduct 30% of the equipment's value as bonus depreciation in the first year that it operated, and has deducted 10% a year in each of the four years since. What is the current book value of the machinery? If it manages to sell the equipment for $23 million this year (considering the 20% tax rate that it pays) how much money will the sale of the equipment generate for the firm? You are a manager in a firm that produces tractors and high-end agricultural equipment. Your company is deciding whether to pursue the development of a line of self-driving ploughs, which would be able to till large fields without the need for a farmer to be physically present in the cabin. Developing this technology would require a substantial initial investment of $80 million right away in new capital equipment