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A profitable company buys $30,000 equipment. It claimed 50% bonus depreciation. The equipment expected to bring cash flow of $12,000 every year over its
A profitable company buys $30,000 equipment. It claimed 50% bonus depreciation. The equipment expected to bring cash flow of $12,000 every year over its 5 years property class period, when it will be sold for $5000. What are the after tax cash flow for 2 years? What is the total present value of these two cash flow? (P) Tax rate = 21% and IRR = 6%
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
