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A fleet of delivery vans will cost $160,000. Depreciation is straight line over five years. For capital budgeting purposes, however, you will use cash flow
A fleet of delivery vans will cost $160,000. Depreciation is straight line over five years. For capital budgeting purposes, however, you will use cash flow from salvage at the end of four years and assuming you can obtain a sales price of one half of the initial cost. What will that Year 4 savage cash flow be if the company's tax rate is 27.0%?
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about $12,960
$80,000
$67,040
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