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What is the after tax cash flow effect

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Reference no: EM133003526

Question - Khan's Industry is considering replacing a machine that it purchased three years ago for $200,000. The current book value of the existing machine is $45,000. The new machine costs$130,000 plus $5,000 in installation costs. The firm's marginal tax rate is 34%. What is the after tax cash flow effect if the machine is sold for the following prices:

a. $45,000

b. $30,000

c. $90,000

Reference no: EM133003526

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