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Answer the question. A nuclear power plant is planning to replace the outdated equipment with more environmental-friendly equipment. The new equipment has an initial cost

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Answer the question. A nuclear power plant is planning to replace the outdated equipment with more environmental-friendly equipment. The new equipment has an initial cost of $410,000. The equipment is expected to yield an annual savings of $190,000 each year for the first 4 years and $191,200 each year thereafter. The MACRS with a 15-year recovery period is to be used for tax purposes. Assume an effective tax of 38% and a before-tax MARR of 16.13% per year. If the equipment will be sold for $177,825 at the end of year 10, what is the gain on disposal (depreciation recapture)? (HINT: skip $and comma symbols) Selected Answer:44,657 Correct Answer 32.562.000 3%

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