A project required the purchase of a piece of equipment for $50,000, 4 years ago. It is being depreciated straight-line to $4,000 salvage over 5 years. It can be sold today for $16,500. The tax rate is 30%. {1} What is the Tax Affect on the Sale? [2] What is the estimated after-tax cash flow if the equipment is sold today?

		[1] add $3,300 of Capital Gain to the Sale Price; [2] $13,200
		[1] add $ 990 of Depreciation Recapture to the Sale Price; [2] $17,490
		[1] subtract $990 of Depreciation Recapture from the Sale Price; [2] $15,510
		[1] subtract $3,300 of Capital Loss from the Sale Price; [2] $15,510