Question
Reversing Rapids Co. purchases an asset for $187,382. 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 $187,382. 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 $14,180.
Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals
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Business Mathematics
Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller
12th Edition
0135109787, 9780135109786
