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Milan is looking to expand its eraser offerings. To do so, they will need to purchase...

Milan is looking to expand its eraser offerings. To do so, they will need to purchase equipment costing $1,763,794. The equipment is to be depreciated straight line to zero over the 6 year life of the equipment. At this point, it will be sold for 24% of the initial cost. If the tax rate is 28, what is the terminal cash flow associated with the equipment?

(Round your answer to the nearest dollar ex: 12,345 instead of 12,345.06)

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Answer #1

Terminal cash flow associated with the equipment is given as equal to=1763794*24%*(1-28%)=304783.6032

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