
A machine is purchased for $500,000 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 40%?
A) $37,050
B) $15,180
C) $37,950
D) $59,820
Correct Answer:
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