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Five years ago, a pharmaceutical company bought a machine that produces pain-reliever medicine at a cost of $3 million. The machine has been depreciated over
Five years ago, a pharmaceutical company bought a machine that produces pain-reliever medicine at a cost of $3 million. The machine has been depreciated over the past five years, and the current book value is $1,100,000. The company decides to sell the machine now at its market price of $1.4 million. The marginal tax rate is 30 percent. What are the relevant cash flows from the sale?
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