1.An asset with 5-year MA

1.An asset with 5-year MA

1.An asset with 5-year MACRS life will be purchased for $20,000. It will produce net annaul benefits of $5,000 per year for 6 years, after which time it will have a net salvage value of zero and will be retired. The company’s marginal tax rate is 35%. Complete the following after-tax cash flow table.

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