A new piece of equipment is being justified. The first cost…
A new piece of equipment is being justified. The first cost is $68 K. The expected life is 8 years with the salvage value estimated at $4000. In year 8, the cash flow indicates savings plus operating expenses is equal to $18,000 and the book value for the asset is 0. If the effective tax rate is 30%, what is the after tax cash flow in year 8?
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