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An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $59,000, and it has an estimated
An asset for drilling was purchased and placed in service by a petroleum production company. Its cost basis is $59,000, and it has an estimated MV of $12,500 at the end of an estimated useful life of 11 years. If the expected annual net revenue from this asset is $9,500, what is the after-tax cash flow for year 4 (end of year 4). The company's paying income tax at the 30% rate and the 150% DB method is used for depreciation. Round to the nearest dollar
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