and the EBIT, we can estimate the taxes for a project for the If we know the year. 1) MACRS percentage 2) sunk costs 3) salvage value 4) tax rate Saved Question 7 (6 points) Southern Inc. purchases an asset for $150,000. This asset qualifies as a five-year recovery asset under MACRS with the fixed depreciation percentages as follows: year 1 20.00%; year 2 32.00 % ; year 3-19.20 % ; year 4 11.52 %. Southern has a tax rate of 35 %. If the asset is sold at the end of four years for $40,000, what is the cash flow from disposal (termination value of the asset)? 1) $36,089 2) $35,072 3) $34,931 4) $33,678