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Your firm purchased a machine for $ 1 4 million five years ago. According to IRS rules, the machine must be depreciated straight - line

Your firm purchased a machine for $14 million five years ago. According to IRS rules, the machine
must be depreciated straight-line over 7 years for tax purposes. After depreciating the machine for five
years, you have just decided to sell it. The tax rate is 20%. What is the after-tax cash-flow from the sale
of the machine if the sale price is:
a. $3.5 million
b. $4 million
c. $4.5 million

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