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A company depreciated a $10,000 asset with 60% BONUS + MACRS DEPRECIATION. The asset has a 5-year MACRS CLASS LIFE. The asset generated revenues of
A company depreciated a $10,000 asset with 60% BONUS + MACRS DEPRECIATION. The asset has a 5-year MACRS CLASS LIFE. The asset generated revenues of $8,000 each of the 4 years the asset was in use. At the end of the four years, the asset had no salvage value. The company is in a 26% incremental tax bracket. N Actual $ ATCE -10,000 THIS VALUE 0 Actual $ BTCF -$10,000 $8,000 $8,000 $8,000 $8,000 1 M| | 4 The value of the ACTUAL $ AFTER TAX CASH FLOW (ATCF) at n=1 is closest to
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