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A piece of newly purchased industrial equipment costs $98,500,000, and is classified as a five-year property under MACRS. Calculate the annual depreciation allowances and the
- A piece of newly purchased industrial equipment costs $98,500,000, and is classified as a five-year property under MACRS. Calculate the annual depreciation allowances and the end-of-year book values for this equipment. If the equipment is sold for 45% of the initial cost in year 5, what is the after-tax cash flow from the sale if the tax rate is 25%?
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