Problem 11.06 (Solution Video) Pharoah Potions, Inc., a pharmaceutical company, bought a machine at a cost of $2 milion five years ago that produces pain-relever medicine. The machine has been depreciated over the past five years, and the current book value is $812,000. The company decides to sell the machine now at its market price of $1 million. The marginal tax rate is 25 percent. What are the relevant cash flows? Relevant cash flow How do they change of the market price of the machine is $600,000 inste Relevant cash flow