sunshine travel inc is a producer of upright suitcases. ST needs to invest $35,000,000 in equipment which will be depreciated on a seven-year MARCS schedule. The value of the used equipment is expected to be worth $3,800,000 as at the end of the 5 year project life.

Estimation of the total Year 5 cash flows

at the end of the projects 5-year life

Accumulated depreciation of equipment = $27191500

Book value of equipment= $7808500

Market value of equipment= $38000000

Tax associated with the sale of equipment = ???

CF on sale of equipment= ???????????

total Year cash flow = ????????