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Mama’s Goulash Company is considering purchasing a washer. The dishwasher cost $50,000 and would be depreciated over three years using MACRS. After three years, Mama’s plans to sell the dishwasher for $10,000. The tax rate is 40%. What are the cash flows related to the acquisition of the dishwasher? What are the cash flows related to the disposition of the dishwasher?

Financial Management, Finance

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