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QUESTION 2 What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86.000, the tax

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QUESTION 2 What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86.000, the tax rate is 20%, the equipment is sold in 2 years for $18,000, and MACRS depreciation is used where the depreciation rates in years 1. 2. 3, and 4 are 40.0%, 35.0%. 20.0% and 5.0%, respectively? a. 518,700 (plus or minus $100) b. $14,400 (plus or minus 5100) c. $17,300 (plus or minus 5100) d. 52,800 (plus or minus 5100) e. None of the above is within $100 of the correct

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