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ABC Company is considering the purchase of a new machine for $80,000 installed. The machine will...

ABC Company is considering the purchase of a new machine for $80,000 installed. The machine will be depreciated by MACRS as 5 year property. The firm expects to operate the machine for 4 years and then to sell it for $11,750. If the marginal tax rate is 25.00%, what will the after–tax salvage value be when the machine is sold at the end of Year 4? Enter your answer rounded to two decimal places.  

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Answer #1

Book value on purchase less: accumulated depreciation Book value on sale $80,000.00 $66,176.00 $13,824.00 80,000*(0.2+0.32+0.

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