Teach Marine Contractors is planning to purchase a dredging pump which has a 3-year class life....
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Teach Marine Contractors is planning to purchase a dredging pump which has a 3-year class life. The depreciable basis of the machine is $102225. The company's marginal tax rate is 28%. If the company uses MACRS, and the machine is sold after three years for $21468 what will be the after-tax cash flow associated with the disposal? (The table below provides the 3-yr MACRS rates.) Year MACRS % 1 33% Answer: 2 45% 3 15% Report your answer rounded to two decimal places. 4 7% Teach Marine Contractors is planning to purchase a dredging pump which has a 3-year class life. The depreciable basis of the machine is $102225. The company's marginal tax rate is 28%. If the company uses MACRS, and the machine is sold after three years for $21468 what will be the after-tax cash flow associated with the disposal? (The table below provides the 3-yr MACRS rates.) Year MACRS % 1 33% Answer: 2 45% 3 15% Report your answer rounded to two decimal places. 4 7%
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Step 11 The after tax cash flow is computed as shown below Sales value Tax saving o... View the full answer
Related Book For
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
Posted Date:
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