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A chain of movie theaters just upgraded its sound equipment across a number of locations, for a combined expense of $ 8 3 0 ,
A chain of movie theaters just upgraded its sound equipment across a number of locations, for acombined expense of $ The sound equipment can be depreciated according to a fiveyear accelerated depreciation schedule, which allows for of the cost to be depreciated inthe first year. In years the company may depreciate of the cost each year and theremaining is depreciated in year The movie theater chain tries to only employ the highestquality sound equipment, and accordingly, it plans to sell the equipment it just purchased at the end of year and replace it with newer technology. If the company is able to sell the equipment for $ in year three, and pays corporate taxes at a rate of what would be the cash flow from assets generated by the firm from selling the equipment?
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