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Marshall-Miller & Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years. Under the

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Marshall-Miller \& Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of 5 years. Under the new tax lawine is eligible for 100% bonus depreciation, so it will be fully depreciated at t=0. The firm expects to operate the machine for 4 years and then to sell it for $26,600. If the marginal tax rate is 25%, what will the after-tax salvage value be when the machine is sold at the end of Year 4 ? a. $19,950 b. $14,150 c. $22,450 d. $33,250 e. $19,100

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