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The Jones Company has just completed the fourth year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $400,000.
The Jones Company has just completed the fourth year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $400,000.
a. What is the book value of the equipment after the forth year ?
b. If Jones sells the equipment today for $99,120 and its tax rate is 35%, what is the after-tax cash flow from selling it?
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Production And Operations Analysis
Authors: Steven Nahmias, Tava Lennon Olsen
7th Edition
1478623063, 9781478623069
