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You have a one-year project. The equipment costs $100,000 and the salvage value at the end of the project (1 year later) is $60,000. Calculate

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You have a one-year project. The equipment costs $100,000 and the salvage value at the end of the project (1 year later) is $60,000. Calculate the tax adjustment amount at the end of the project based on the 2 depreciation methods: Case 1 Case 2 Sales 200,000 200,000 COGS 30,000 30,000 Depreciation 10,000 50,000 EBIT 160,000 120,000 Tax (25%) 40,000 30,000 NI 120,000 90,000 (10 points) Show your calculation to get full points. Answer: Case 1: Case 2

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