Question
Reversing Rapids Co. purchases an asset for $167,972. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1,
Reversing Rapids Co. purchases an asset for $167,972. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has a tax rate of 30%. The asset is sold at the end of year 4 for $10,071.
Calculate After-Tax Cash Flow at disposal.Round the answer to two decimals.
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
