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Home / Questions / Two years ago Agro Inc purchased an ACE generator that cost $250000 Agro had to pay an add...

Two years ago Agro Inc purchased an ACE generator that cost $250000 Agro had to pay an additional $50000 for delivery and installation and the investment in the generator required the firm to

Two years ago, Agro, Inc., purchased an ACE generator that cost $250,000. Agro had to pay an additional $50,000 for delivery and installation, and the investment in the generator required the firm to increase its net working capital position by $25,000. The generator, which is being depreciated over a period of five years using straight-line depreciation, has a current market value of $79,550. The firm’s marginal tax rate is 40 percent. If the firm liquidates the asset for its current market value, compute the aftertax proceeds from the sale of the asset.

Mar 31 2020 View more View Less

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