Question: A widget-maker is buying a new machine. The machine costs 96 and is being depreciated over 10 years using straight-line depreciation. The firm has a
A widget-maker is buying a new machine. The machine costs 96 and is being depreciated over 10 years using straight-line depreciation. The firm has a marginal tax rate of 22%. What is the capital gain on the machine if it is sold after 4 years for 35.
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