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Marcs Depreciation Rate Year 0 = 33.33% Year 1 = 44.45% Year 2 = 14.81% Year 3 = 7.41% A machine is purchased for $500,000

Marcs Depreciation Rate Year 0 = 33.33% Year 1 = 44.45% Year 2 = 14.81% Year 3 = 7.41%

A machine is purchased for $500,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 40%?

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