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Granny's Butter and Egg Business is such that she pays an effective tax rate of 38%. Granny is considering the purchase of a new Turbo
Granny's Butter and Egg Business is such that she pays an effective tax rate of 38%. Granny is considering the purchase of a new Turbo Churn for $25,000. The churn is a special handling device for food manufacture (MACRS 3-year Property) and has an estimated life of 4 years and a salvage value of $5000. The new churn is expected to increase net income by $7500 per year for each of the 4 years of use. Based on this information, what is the after-tax cash flow for this churn in the 4th year after purchase?
$8454 | ||
$5354 | ||
$6057 | ||
$8873 |
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