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7. Ch. 12. A profitable company buys $30,000 equipment, a 7-years property. It claims 50% bonus depreciation. The equipment expected to bring cash flow of
7. Ch. 12. A profitable company buys $30,000 equipment, a 7-years property. It claims 50% bonus depreciation. The equipment expected to bring cash flow of $10,000 every year, and after 5 years it will be sold for $5000. What are the after-tax cash flows for 5 years? What is the present worth of the equipment? Tax rate is 21%
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