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If a firm is expecting the salvage value of a new piece of equipment to be zero but the book value is expected to equal
If a firm is expecting the salvage value of a new piece of equipment to be zero but the book value is expected to equal $10 million at the end of the equipment's useful life. What is the cash flow implication at the end of the equipment's useful life? Assume a tax rate of 20%. Why does this event cause a tax implication?
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