QUESTION 9The MLA investments purchased a machine a few years ago. The original cost of the machine was $140000. The machine is depreciated to an assumed salvage value of zero using five-year straight line depreciation method. However, after using the machine for three years, the companydecided to sell it for a price of $80000. If the company's marginal tax rate is 21 percent, what is the after-tax cash flow associated with this transaction?

Particulars Values Original cost of machine $ 1,40,000.00 Project life 5 years Sale…

Answered: The MLA investments purchased a machine…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 3P

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