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Question8 A machine which was bought 3 years ago for $10,000 is depreciated on a straight-line basis over 5 years. If the corporate tax rate is 32% and the machines is sold for $4,500, what is the free cash flow for the sale, i.e. what is its after-tax salvage cash flow? The after-tax salvage cash flow is $[input] (Answer to the nearest 1 dollar) Maximum marks: 10 Flag question undefined
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First, determine the annual depreciation under straight-line: cost 10,000 over 5 years gives annual depreciation of 10,000 / 5 ......Login to view full explanationLog in for full answers
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