A machine is purchased for $575,000 and is used through the end of Year 2....
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Accounting
A machine is purchased for $575,000 and is used through the end of Year 2. The machine will be depreciated using the 3-Year MACRS schedule. At the end of Year 2, the machine is sold for $75,000. What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 35%? (Assume that the MACRS depreciation rates are 33.33%, 44.45%, 14.81%, and 7.41% for year 0, Year 1, Year 2, and Year 3, respectively)
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