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Compute the tax effect of selling an equipment at end of the project in year 5. The equipment costs $4,000,000 today and is estimated it
Compute the tax effect of selling an equipment at end of the project in year 5. The equipment costs $4,000,000 today and is estimated it can be sold for $70,000 at the end of the project in year 5. The equipment is considered for tax purposes as a 5-year MACRS class. The tax rate is 40%. The MACRS table is provided in excel in this problem, just click here
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