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A firm is trying to determine the cash flow from selling an old computer system to an interested buyer. The computer system was purchased five
A firm is trying to determine the cash flow from selling an old computer system to an interested buyer. The computer system was purchased five years ago for $448,595.00. The system was depreciated using the 7-year MACRS schedule. The firm has an offer this morning for $43,009.00. The tax rate facing the firm is 37.00%. The firm will only accept the offer if it generates a cash flow greater than $43,079.00.
What is the NSV from selling the computer system today?
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