Question: Poons Noodle House is considering replacing their noodle-processing machine. The current machine was purchased 10 years ago at a total cost of $50,000. It is

Poons Noodle House is considering replacing their noodle-processing machine. The current machine was purchased 10 years ago at a total cost of $50,000. It is being depreciated straight-line to a zero value over 12.5 years. If Poon sells the noodle-processing machine for $10,500 what is the after-tax cash flow to Poons Noodle House? Use 35% for the effective tax rate.

$10,325

$10,675

$10,825

$10,000

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