You have a piece of equipment for which you paid $500,000 8 years ago, but now has book value of $192,000. Next year's depreciation will be S96,000. You can sell the equipment today for $80,000 or you can sell it one year from now also for $80,000. If you do not sell it now, you will definitely sell it next year. How much before tax cash flow (BTCF) must the equipment produce over the next year (assume that it all comes at the end of the year) to justify keeping it for one more year? You are in the 40% tax bracket and your after tax MARR-10%. Assume that all capital gains are taxed as ordinary income.