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Business, 22.04.2020 00:20 bridneyfondren

Bacon Signs purchases a machine for $70,000. The machine qualifies as a 5-year recovery asset under MACRS with rates for years 1,2,3 and 4 repectively at: 20%, 32%, 19.2% and 11.52%. The firm has a tax rate of 40%. If the machine is sold at the end of 2 years for $50,000, what is the cash flow from disposal?

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