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You are upgrading your machinery and as part of the process you will be selling your old machinery that has a book value of $50,000.

You are upgrading your machinery and as part of the process you will be selling your old machinery that has a book value of $50,000. If you sell it for $40,000, what is the net effect after tax on the NPV of this machine replacement evaluation if your tax rate is 20%?

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