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Epps Movie Co. plans to sell a movie theater after operating it for five years. The movie theater is expected to sell for $2 million
Epps Movie Co. plans to sell a movie theater after operating it for five years. The movie theater is expected to sell for $2 million and originally cost $1.5 million. Accumulated depreciation on the theater is $1 million. During the last year of operation, the theater is expected to have net cash flows of $150,000. If the tax rate is 40%, what is the terminal cash flow?
$600,000 | ||
$500,000 | ||
$1,400,000 | ||
$1,550,000 | ||
None of the above. |
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