Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 22 3 pts Your firm is purchasing an asset that falls under the 3 year MACRS class. Annual expense percentages in this class are

image text in transcribed

Question 22 3 pts Your firm is purchasing an asset that falls under the 3 year MACRS class. Annual expense percentages in this class are 33.33%, 44.45%, 14.81% and 7.41%. It will be used in a project that is projected to last only 3 years. Today the asset will cost $150,000. You believe you can sell it at the end of three years for $30,000. Calculate the after-tax cash flow from the sale of the truck (aka after-tax salvage value). Your firm's tax rate is 30%. Show your work for partial credit. If you choose to do the calculations on Excel, you can copy and paste the steps into the answer space

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance And Financial Markets

Authors: Keith Pilbeam

3rd Edition

023023321X, 978-0230233218

More Books

Students also viewed these Finance questions