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Example You purchase a machine that will cost your company $1.5m, and it has a life of 5 years, it has no salvage value.

Example You purchase a machine that will cost your company $1.5m, and it has a life of 5 years, it has no salvage value. You plan to use the project for 3 years and then sell the machine for $800k. The capital gains tax rate is 20%. Assume straight line depreciation, what is the tax obligation resulting from the sale?

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