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Pera Inc. is planning to buy a piece of equipment that can be used in a 10-year project.The equipment costs $3,000,000; has a tax life
Pera Inc. is planning to buy a piece of equipment that can be used in a 10-year project.The equipment costs $3,000,000; has a tax life of 10 years, and is depreciated using the straight-line method. The equipment can be sold at the end of 10 years for $200,000. If the marginal tax rate is 40 percent, what is the after-tax cash flow from the sale of this asset (termination value of the equipment)?
In entering your answer, do not use $ sign, use commas to separate thousands, and round to the nearest dollar.
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