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Books Inc. purchases a new machine for $100,000 that is to be depreciated on a straight line basis over 10 years. After 5 years, Books

  1. Books Inc. purchases a new machine for $100,000 that is to be depreciated on a straight line basis over 10 years. After 5 years, Books Inc. sells the machine for $80,000. If the marginal tax rate is 40%, what is the cash inflow from this sale?

    $72,500

    $68,000

    $70,000

    $71,000

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