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What are the relevant cash flows from the sale

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Problem: Five years ago, a pharmaceutical company bought a machine that produces pain-reliever medicine at a cost of $3 million. The machine has been depreciated over the past five years, and the current book value is $1.100,000. The company decides to sell the machine now at its market price of $1.4 million. The marginal tax rate is 30 percent. What are the relevant cash flows from the sale? Please show your complete work regarding this problem.

Reference no: EM132415652

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