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Corning purchases a new machine in year 0 to produce square Corningware. The machine costs $ 4 , 0 0 0 . At the end

Corning purchases a new machine in year 0 to produce square Corningware. The machine costs $4,000. At the end of year 2, the machines are in short supply and Corning sells the machine for $6,500. Corning realizes a capital gain on the sale and must pay capital gains taxes. What are the cash flows from the sale of the Corningware machine?The value of the machine is year 0 is $5,000. Assume that the useful life of the machine is 5 years, that Corning applies straight-line depreciation, and that the corporate tax rate is 21%. A. $4,100B. $861 C. $5,639 D. $945E. $6,555

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