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QUESTION 7 1. Acapital investment Tractor Unit for use Over-The-Road has the following current and projected cash flows during the recovery period. Using MACRS depreciation

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QUESTION 7 1. A"capital investment" Tractor Unit for use Over-The-Road has the following current and projected cash flows during the recovery period. Using MACRS depreciation with half year convention, what will be its book value in year three? Initial Cost (5) Revenue ($/yr) Maintenance ($/yr) Tax Rate $300,000 $150,000 $10,000 25% Market Rate Inflation Rate 45

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