Question
Gig Harbor, Inc. is considering the purchase of a 5-year MACRS equipment at $215,000. The company expects to sell the equipment after four years at
Gig Harbor, Inc. is considering the purchase of a 5-year MACRS equipment at $215,000. The company expects to sell the equipment after four years at a price of $65,000. What is the after-tax cash flow from this sale if the tax rate is 35 percent?
MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
