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Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of
Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being depreciated straight line to 0 over 8 years. If Margaret's Bakery sells the display cases at the following prices what are the after-tax cash flows to Margaret's Bakery? Use 40% for the effective tax rate. A $25,000.00 B $30,000.00 C $35,000.00 D $10,000.00
Remember to use a $, commas where appropriate, and carry your answer to 2 decimal places.
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