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You are considering the purchase of a new machine for $50,000. The machine into MACRS-5 years category, and it can be depreciated according to the

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You are considering the purchase of a new machine for $50,000. The machine into MACRS-5 years category, and it can be depreciated according to the rates given below. The firm expects to operate the machine for 4 years and then to sell it for $12,500. If the marginal tax rate is 40%, what will the after-tax cash flow from selling the machine at the end of Year 4? Year Depreciation Rate 0.20 0.32 0.19 0.12 0.11 0.06 2

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