Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Stock Tek just purchased an important machine for $74,000. In three years it will sell this machine for $31,500. The property is in the 5

Stock Tek just purchased an important machine for $74,000. In three years it will sell this machine for $31,500. The property is in the 5 years MACRS class, so the depreciation percentages are as follows, starting with Year 1: 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76% percent. If the tax rate is 21% What is the after-tax cash flow from this year 3 sale? (NOTE: Round your answer to the nearest cent)

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_2

Step: 3

blur-text-image_3

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

Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert Hughes

10th Edition

0073530697, 9780073530697

More Books

Students also viewed these Finance questions

Question

Prove Equation (5.22).

Answered: 1 week ago