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JRB Operations invested in a piece of equipment that cost $200,000. They use MACRS depreciation and it is a 5 year class life. At the

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JRB Operations invested in a piece of equipment that cost $200,000. They use MACRS depreciation and it is a 5 year class life. At the end of year 6 JRB sells the equipment for $10,000. JRB is in the 35% tax bracket and has a MARR of 10%. Depreciation Recapture is taxed at 35%. The BTCF is given below: The After Tax Rate of Return on this investment is: 15% 17.6% 16% 14.9%

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