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Auto Nation purchased some $100,000 of fixed assets 3 years ago that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32
Auto Nation purchased some $100,000 of fixed assets 3 years ago that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for years 1 to 5, respectively. The tax rate is 20 percent. If the assets are sold today for $25,000, what will be the after-tax cash flows from the sale?
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