Question: Solarity Inc. is considering a new widget machine. They have spent $100,000 researching the market for this new product. The cost of the machine is
Solarity Inc. is considering a new widget machine. They have spent $100,000 researching the market for this new product. The cost of the machine is $235,000 and it is in the 5-year MACRS category. The shipping and installation costs will total $58,000. The project is expected to have $500,000 per year in sales, and $350,000 in annual operating costs. The resale value of the machine in year 3 is 120,000 . The firm's tax rate is 21. What is ATCF (after tax cash flow) for the sale of the aspt in year 3 ? Multiple Choice $104,306.64 5108,43964 $112,520,64 $116,727,64
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