Question: Martinez,Ltd. Purchases a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%.

  1. Martinez,Ltd. Purchases a duplicating machine for $15,000. This machine qualifies as a five-year recovery asset under MACRS. The company has a tax rate of 33%. If the company sells the machine at the end of four (4) years for $4,000, what is the cash flow from disposal? Show your calculations.

    1. $3,535.36

    2. $3,408.22

    3. $2,592.00

    4. $1,408.00

    Minimum 150 words

    ISBN # 9780132671033

    Financial Management Core Concepts by Raymond Brooks

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