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Five years ago an organic farm bought a small tractor for $150,000. The equipment has reached the end of its useful life, and its purchase
Five years ago an organic farm bought a small tractor for $150,000. The equipment has reached the end of its useful life, and its purchase price has been fully depreciated. The firm is able to sell the equipment for $15,000. Given that the firm's marginal corporate tax rate is 34%, what is the terminal cash flow for this tractor?
$5,100
$26,900
$9,900
$32,000
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