5. The firm must purchase manufacturing equipment costing $8 million. The equipment fell into the five-year MACRS depreciation category. Depreciation percentages for the first three years respectively were: 20%, 32%, and 19%. The cash outlay would be at Time 0, and depreciation would start in 2013. Analysts estimated the equipment could be sold for book value at the end of the projects life.

Please answer as soon as you reasonably can. I need help solving for the Salvage Cash Flow Impact

2 2015 Year PERSISTENCE Depreciation - Schedule 1 MACRS Depreciation - Equipment Depreciation - Equipment Book Value - Equipment $ 8.00 $ 20% 1.60 $ 6.40 $ 32% 2.56 3.84 $ $ 19% 1.52 2.32 $ 2015 Salvage Value PP&E - Schedule 2 Equipment Market Book Gain/(Loss) Tax Impact Salvage Cash Flow Impact - Factory 40%