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Bill and Ben (BB) is considering the purchase of a new machine for $50,000.00. BB will use the straight-line method to depreciate the machine. This
Bill and Ben (BB) is considering the purchase of a new machine for $50,000.00. BB will use the straight-line method to depreciate the machine. This machine has a lifetime of 5 years and will be depreciated to zero. BB, however, expects to sell the machine at the end of the 4th year of operation for $12,000.00. If BBs marginal tax rate is 30%, what will be the after-tax proceeds from selling this machine?
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