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Question 2 35 pts A special tool costs $100,000. It is being depreciated with 4 years of Double Decline Balance method. After 3 years, because

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Question 2 35 pts A special tool costs $100,000. It is being depreciated with 4 years of Double Decline Balance method. After 3 years, because of technological change, the tool is salvaged with zero value. The before-tax cash flows are 30,000 (Yr-1). 40,000 (yr-2) and 40,000 (yr-3) The tax rate is 20% a. Find the After-tax cash flow of these three years. bonus point 10 on part b. b. Is it worth investing at a 9% rate of Interest? Justify. Taxable Inc Tax ATCF Year BTCF Depreciation 0 11 30,000 2 3 40,000 40,000 Salv=0

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