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ABC Company must purchase a new miling machine. The purchase price is $50.000, and the shipping cost is $10,000. In addition, 55,000 NWC is required
ABC Company must purchase a new miling machine. The purchase price is $50.000, and the shipping cost is $10,000. In addition, 55,000 NWC is required if the machine is in used The machine has a tax life of 5 years and uses a 5-year class MACRS depreciation method. The firm expects to operate the machine for 3 years and then to sell for $13,500 If the marginal tax rate is 30%, what will the after-tax salvage value be when the machine is sold at the end of Year 37 Year Depreciation Rate 1 020 0.32 0.19 4 0.12 0.11 0.00
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