The jones company has just completed the third year of a


The Jones Company has just completed the third year of a five-year MACRS recovery period for a piece of equipment it originally purchased for $300,000.

a) What is the book value of the equipment?

b) If Jones sells the equipment today for $180,000 and its tax rate is 35%, what is the after-tax cash flow from selling it?

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Financial Management: The jones company has just completed the third year of a
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