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Alpha Car Rental purchased 5 cars for a total of $100,000 four year ago. Now it is replacing the cars with newer vehicles. The company

Alpha Car Rental purchased 5 cars for a total of $100,000 four year ago. Now it is replacing the cars with newer vehicles. The company has depreciated the cars under the 5-year MACRS category over these four years, and they have a current book value of $17,280. Alpha sold these cars for a total of $15,000 at the end of year 4. Assume a tax rate of 40%. What is the total cash inflow from the sale of these vehicles?

a.

$15,912

b.

$17,280

c.

$2,280

d.

$15,000

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