Oriole Potions, Inc, a pharmaceutical company, bought a machine at a cost of $2 million...
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Oriole Potions, Inc, a pharmaceutical company, bought a machine at a cost of $2 million five years ago that produces pain-reliever medicine. The machine has been depreciated over the past five years, and the current book value is $766,000. The company decides to sell the machine now at its market price of $1 million. The marginal tax rate is 25 percent. What are the relevant cash flows? Relevant cash flow How do they change if the market price of the machine is $600,000 instead? Relevant cash flow
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