A company installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of the older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which oringinally costs $40 million, has depreciated straight-line over a tax life of 5 years, but can now be sold for $18 million. The firm's tax rate is 35%. What is the after tax cash flow from the sale of the equipment?

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