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#3 Dixie Chicken is about to close one of its fast food franchises. As part of the closing, the firm will sell a refrigeration unit
#3 Dixie Chicken is about to close one of its fast food franchises. As part of the closing, the firm will sell a refrigeration unit and its cooking units. The book value of the refrigeration unit is currently $19,273.00, while the book value of the cooking unit is $1,642.00. A buyer has offered $11,630.00 for the refrigerator and $5,495.00 for the cooking unit. The tax rate facing the firm is 35.00%. What is the cash flow from selling these assets? Submit Answer format: Currency: Round to: 2 decimal places. #4 + A firm is thinking about replacing an assembly line. The assembly line was purchased 28.00 years ago for $2.59 million. It has been straight-line depreciated over a 40-year time frame (straight-line to zero). Today, the firm believes it can sell the assembly line to a buyer for $588,378.00. It will use the cash flow from this transaction to offset the cost of a new assembly line. The tax rate facing the firm is 37.00%. What is the NSV from selling the old assembly line today? Submit Answer format: Currency: Round to: 2 decimal places
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