Question: Plenty is considering replacing its some old equipment that has a market value of $1 million but a book value of only $200,000. If the

Plenty is considering replacing its some old equipment that has a market value of $1 million but a book value of only $200,000. If the equipment is not sold, the firm will depreciate the remaining book value in the coming year. The firms marginal tax rate is 34%. How would the firms free cash flow be affected if the firm keeps the equipment versus selling the old equipment

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