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JG Corporation, a firm with a 30% corporate tax rate, is considering an investment in a new production machine. It estimates that, at the end
JG Corporation, a firm with a 30% corporate tax rate, is considering an investment in a new production machine. It estimates that, at the end of the project (at t=5), the machine can be sold for $0.50 million (its residual book value will be $0 at t=5) and it will sell its inventories of $0.3 million. What is JG Corporations cash flow at t=5? Suppose there are no other cash flows such as EBIT or depreciation. Group of answer choices
$0.35 million
$0.05 million
$0.65 million
$0.80 million
$0.30 million
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