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Calculate the total terminal cash flow using both straight line depreciation and then using MACRS depreciation. The asset has an installed cost of $500,000, a
Calculate the total terminal cash flow using both straight line depreciation and then using MACRS depreciation. The asset has an installed cost of $500,000, a five-year life and a 3-year MACRS. The tax rate is 20%. The asset can be sold at the end of year 5 for $100,000. It requires an increase in NWC at time 0 in the amount of $40,000. Explain why they are the same or different.
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