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Assumptions: Tax depreciation is straight-line over three years.Pre-tax salvage value is 25 in Year 3 and 50 if the asset isscrapped in Year 2. Tax

Assumptions: Tax depreciation is straight-line over three years.Pre-tax salvage value is 25 in Year 3 and 50 if the asset isscrapped in Year 2. Tax on salvage value is 40% of the differencebetween 2 answers

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