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Manzana Inc. is planning to buy a piece of equipment. The equipment costs $ 4 , 0 0 0 , 0 0 0 . The

Manzana Inc. is planning to buy a piece of equipment. The equipment costs $4,000,000. The equipment is considered for tax purposes as a 5-year MACRS class. If the equipment is sold at the end of 5 years for $200,000, what is the after-tax cash flow from the sale of this asset (after-tax net salvage value or termination value of the equipment)? The marginal tax rate is 40 percent.
The annual expense percentage for a 5-year MACRS property from year 1 to 6 respectively are: 20.00%; 32.00%; 19.20%; 11.52%; 11.52: and 5.76%.
In entering your answer, do not use $ sign, use commas to separate thousands, and round to the nearest dollar. For example, if your obtain $30,450.92 then enter 30,451; if you obtain $30,000.00 then enter 30,000
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