(Solved by Humans)-Your firm needs a machine which costs $150,000, and requires $30,000 in maintenance for each year of
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Your firm needs a machine which costs $150,000, and requires $30,000 in maintenance for each year of its 7 year life. After 3 years, this machine will be replaced. The machine falls into the MACRS 7-year class life category. Assume a tax rate of 40% and a discount rate of 14%. If this machine can be sold for $15,000 at the end of year 7, what is the after tax salvage value?
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This question was answered on: 10 May, 2025
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