The machinery costs $200,000, and is to be depreciated using the MACRS, as a 5...

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Finance

The machinery costs $200,000, and is to be depreciated using the MACRS, as a 5 year asset. This company uses tax rate of 34% for studies, and the machine is in use for 10 years.

Note that there are multiple questions based on this problem.

How much will be the impact of depreciation (only) on the After Tax Cash Flows.

The 6th year AT cash flow will be reduced/increased by: (+ for increase, - for decrease)

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