First cost of equipment = $200,000Market value at the end of year 6 = $10,000MACRS depreciation is used. The equipment is a 5-year property.Incremental income-tax rate for the company = 35% Year 0 1 2 3 4 5 6 BT-CF (Before Tax Cash Flow)  in $ -200K 60K 63K 66K 69K 72K 75KMarket value = 10K The Year 2 taxable income is equal to ________________. Group of answer choices -$1,000 $500 -$350 $400 $750 -$250

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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First cost of equipment = $200,000
Market value at the end of year 6 = $10,000
MACRS depreciation is used. The equipment is a 5-year property.
Incremental income-tax rate for the company = 35%

Year 0 1 2 3 4 5 6
BT-CF (Before Tax Cash Flow)  in $ -200K 60K 63K 66K 69K 72K 75K
Market value = 10K

The Year 2 taxable income is equal to ________________.

Group of answer choices
-$1,000
$500
-$350
$400
$750
-$250
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