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An experimental electric autonomous car purchased for $150,000 with S=$20,000 after 5 years was depreciated using the 5-year MACRS rates. Expenses average $25,000 per year
An experimental electric autonomous car purchased for $150,000 with S=$20,000 after 5 years was depreciated using the 5-year MACRS rates. Expenses average $25,000 per year and the effective tax rate is 30%. The asset is actually sold after 5 years of service for $15,000. MACRS rates in year 5 and 6 are 11.52% and 5.76% respectively. The after-tax cash flow from the sale is closest to: $12,228 $15,160 $17,130 $13,092
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