Question
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 $437,467.00. The system was depreciated using the 7-year MACRS schedule. The firm has an offer this morning for $72,394.00. The tax rate facing the firm is 37.00%. The firm will only accept the offer if it generates a cash flow greater than $48,794.00. What is the NSV from selling the computer system today?
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Accounting Principles
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
12th edition
1119132223, 978-1-119-0944, 1118875052, 978-1119132226, 978-1118875056
