Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end
Question:
Your firm purchased machinery with a 7-year MACRS life for $10 million. The project, however, will end after 5 years. If the equipment can be sold for $4.5 million at the completion of the project, and your firm's tax rate is 35%, what is the after-tax cash flow from the sale of the machinery?
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Using the 7year MACRS depreciation schedule after 5 years the machinery ...View the full answer
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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