What is the after-tax cash flow from selling the machine

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Question - Eternal Ltd requires a machine for its 7-year project. The cost of the machine is $500,000 and its useful life is 10 years. The tax regulation allows the machinery to be depreciated for 10 years on a straight-line basis with a zero salvage value. At the end of 7 years, Eternal Ltd expects to sell the machine for $200,000. If the company faces a 30% tax rate, what is the after-tax cash flow from selling the machine?

Reference no: EM133163920

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