The cor- porate tax rate is 40 percent find the after-tax


Answer the following question

A specially coated mold for manufacturing tires (MACRS-GDS 3-year property) costs $35,000 and has a salvage value of $1,750 after a useful life of 5 years. The mold generates a net savings of $14,000 per year.

The cor- porate tax rate is 40 percent. Find the after-tax cash flow for each year using MACRS GDS allowances.

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Financial Management: The cor- porate tax rate is 40 percent find the after-tax
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