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Moore & Moore (MM) is considering the purchase of a new machine for $50,000, installed. MM will use the MACRS accelerated method to the machine,
Moore & Moore (MM) is considering the purchase of a new machine for $50,000, installed. MM will use the MACRS accelerated method to the machine, which is classified as 5-year property (see the following table for depreciation rates). MM expects to sell the machine at the its 4-year operating life for $10,000. If MM's marginal tax rate is 40% what will the after-tax cash flow be when it disposes of the machine at end year 4
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