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Microsoft has just completed year 3 of the 10 year life (8 years remain) of a...

Microsoft has just completed year 3 of the 10 year life (8 years remain) of a piece of equipment it originally purchased for $750,000. It is applying straight-line depreciation to this equipment. What is the book value of this equipment at the end of year 2?

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Boeing has just completed year 6 of the 9 year life (3 years remain) of a piece of equipment it originally purchased for $600,000. It is applying straight-line depreciation to this equipment. If Boeing sells the equipment today for 50,000 and its tax rate is 20%, what is the after-tax cash flow from selling it?

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