Mike's Service, Inc., bought a machine for $200,000 exactly 3 years ago. The machine is being...
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Mike's Service, Inc., bought a machine for $200,000 exactly 3 years ago. The machine is being depreciated straight-line to zero over its useful life of 5 years. Mike Nelson, the founder and CEO of the company, has just received an offer of $100,000 for the machine. If the company's marginal tax rate is 35 percent, what is the net cash flow from selling the machine? OA) $65,000 B) $80,000 C) $93,000 OD) $100,000 Mike's Service, Inc., bought a machine for $200,000 exactly 3 years ago. The machine is being depreciated straight-line to zero over its useful life of 5 years. Mike Nelson, the founder and CEO of the company, has just received an offer of $100,000 for the machine. If the company's marginal tax rate is 35 percent, what is the net cash flow from selling the machine? OA) $65,000 B) $80,000 C) $93,000 OD) $100,000
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