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You purchase a machine for $100 in year 0 and plan to terminate your project and sell off the machine for $30 in year 5.
You purchase a machine for $100 in year 0 and plan to terminate your project and sell off the machine for $30 in year 5. The depreciated book value of the machine in year 5 is $0. The corporate tax rate is 35%. The cost of capital is r=5%.. What is the present value (NPV) of the salvage value (after paying taxes) of the machine?
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