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Kewlin Hotels is considering replacing their heavy kitchen equipment. The equipment was purchased 4 years ago at a total cost of $20,000. It is being
Kewlin Hotels is considering replacing their heavy kitchen equipment. The equipment was purchased 4 years ago at a total cost of $20,000. It is being depreciated straight-line to a zero value over 8 years. If Kewlin sells the kitchen equipment for $10,000, what is the after-tax cash flow to Kewlin? (use 40% as the tax rate).
Group of answer choices $6,000 $4,000 $10,000 $14,000
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