a company has collected the following information about a new machine that it is evaluating for possible investment: ----------------------- purchase price $340,000 Salvage value at the end of three years $15,000 Shipping and installation $50,000 Book value at the end of three years $5,000 Marginal tax rate 40% --------------------------- a. what is the machine's depreciable basis --- that is the amount that can be depreciated during its life?

b. in three years, what will be the net cash flow generated by the disposal of the machine?