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First cost of equipment = $150,000 Market value at the end of year 6 = $30,000 MACRS depreciation is used. The equipment is a

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Answer #1

BT-CF - O & M expenses- Depreciation

Net profit = 60000-10000 - 20000

30000

Net cash flow = Profits - taxes

30000-35% of 30000

30000-10500

19500

Depreciation = 120000/6 (150000-30000)

Taxes =

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