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Western Textiles is trying to determine whether to purchase a new weaving machine that costs $186,000. It would cost another $34,000 to install the
Western Textiles is trying to determine whether to purchase a new weaving machine that costs $186,000. It would cost another $34,000 to install the machine. Western plans to use the machine for four years and then sell it for $60,000. The machine will be depreciated according to the MACRS 5-year class of assets. a. What will be the depreciation associated with the machine each year Western uses it? Round your answers to the nearest dollar. Year Depreciation $ 1 2 3 $ 4 b. If its marginal tax rate is 40 percent, what after-tax net cash flow will Western receive when the machine is sold in four years? Round your answer to the nearest dollar. $
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