Please don't use Ai solution You have purchased a machine for $192,572 and are depreciating it using a five-year MACRSschedule (20%, 32%, 19.2%, 11.52%, 11.52%. 5.76%). You are in a 26% tax bracket and will be ableto sell the machine for $71,470 at the end of year four. Calculate your net incremental cash flow fromthe sale of this machine. (Round answer to nearest dollar)

The question requires the determination of the incremental cash flow for the sale of a machinery.…

Answered: You have purchased a machine for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 5P

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You purchased a machine for $1.09 million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is 22%. If you sell the machine today (after three years of depreciation) for $773,000, what is your incremental cash flow from selling the machine? Your total incremental cash flow will be $ (Round to the nearest cent.)
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Haresh
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