7. Voxland Industries purchased a computer for $10,000, which it will depreciate straight line over five years
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7. Voxland Industries purchased a computer for $10,000, which it will depreciate straight line over five years to a $1,000 salvage value. The computer will then be sold at that price. The company’s marginal tax rate is 40%. Calculate the cash flows associated with the computer from its purchase to its eventual sale including the years in between. (Hint: Depreciate the difference between the cost of the computer and the salvage value. At the end of the depreciation life, a net book value remains that is equal to the salvage value.)
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