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Blue Sky Corporation has $41,000,000 in equipment that has a 13 year class life. The equipment is 2 years old. Blue Sky is selling the
Blue Sky Corporation has $41,000,000 in equipment that has a 13 year class life. The equipment is 2 years old. Blue Sky is selling the equipment for $11,000,000. Eastern uses simplified straight line depreciation (zero salvage value) and has a marginal tax rate of 34%. What is the terminal cash flow? Assume no working capital.
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