The Jones Company has just completed the third year of a five-year MACRS recovery period...
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Finance
The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $303,000.
a. What is the book value of the equipment?
b. If Jones sells the equipment today for $180,000 and its tax rate is 21% , what is the after-tax cash flow from selling it? Note: Assume that the equipment is put into use in year 1.
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