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A company is purchasing a new $1,234,000 computer-based system. It will be depreciated straight-line to zero over its 5-year life. After-tax salvage value in year
A company is purchasing a new $1,234,000 computer-based system. It will be depreciated straight-line to zero over its 5-year life. After-tax salvage value in year 5 is $91,000. This will help you produce annually $460,000 in revenues along with $120,000 in cash expenses for each of the five years. There is no working capital requirements. The tax rate is 35%. What is the Net Cash Flow for the last year?
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