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Your firm purchased machinery for $10 million. The machinery falls into asset class 38, which has a CCA rate of 25 percent. The project will end after 5 years. If the equipment can be sold for $4 million at the completion of the project and your firm's tax rate is 35 percent, what is the after-tax cash flow from the sale of the machinery? Assume that the firm has no other assets in Class 38 and the asset class will be terminated upon the sale of the machinery.

answer: $3568994.14

please show detailed solution

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