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Make sure to provide a detailed breakdown of how you arrived to your answer. Use the following MACRS Table and the following information: Revenue of

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Make sure to provide a detailed breakdown of how you arrived to your answer. Use the following MACRS Table and the following information: Revenue of the year is $150,000. All other business expenses can be written-off as $90,000. Business Debt interest paid is $10,000. The ordinary income tax marginal tax rate is 35% and capital gain tax rate is 20%. In addition, a 7-year equipment has been depreciated for 4 years (This year is the 4th year of the depreciation) and is sold for $18,000 at the end of this year. This equipment was purchased at an original cost of $50,000. Calculate the After Tax Cash Flow including cash from the business operation and after tax cash received from selling the machine. Depreoiation rate for r Year 20-yaar 15-year 7-yenr 10-year 3-year 3.750 5.00 0.5o 8.55 7-70 6.93 10 0056 16.00 14.40 11 52 33 3396 44.45 14.2% 20 00% 32.00 7.219 0677 24.49 2 3. 12 49 .713 9.22 6.93 1. 52 6 5.205 4 , 88 4.522 4.462 4 461 7.37 6.55 6.55 6.56 6.55 6.23 5.90 6.90 5.01 5.90 6.92 6.93 4.46 5.76 7 10 4.462 4 461 5.01 5.90 5.91 5.90 5.91 3.28 12 13 4462 4.401 4.462 16 4.461 4.462 4.461 2.95 16 17 1 8 19 20 4 462 4.461 2.231 21

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