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Rainy Day is expecting to sell recycled bottle raincoats for five years. At the end of the project, in year 5, Rainy Day expects to
Rainy Day is expecting to sell recycled bottle raincoats for five years. At the end of the project, in year 5, Rainy Day expects to sell its machinery for $258,787. Because the machine was purchased after 2018, Rainy Day took the bonus depreciation to save money on taxes so in year 5, the book value of the machinery will be 0. What is the expected cash flow from selling the equipment given Rainy Day has a a marginal tax rate of 23%?
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