The firms marginal tax rate is 40 percent what are the


Five years ago, the Mori Foods Company acquired a bean processing machine. The machine cost $30,000 and is being depreciated using the straight-line method over a 10-year period to an estimated salvage value of $0. A new, improved processor is now available, and the firm is considering making a switch. The firm's marginal tax rate is 40 percent. What are the after-tax cash flow effects of selling the old processing unit if it can be sold for the following prices?

a. $15,000

b. $5,000

c. $26,000

d. $32,000

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Financial Management: The firms marginal tax rate is 40 percent what are the
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