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The Shellout Corp. owns a piece of petroleum drilling equipment that cost $300,000.00 and will be depreciated over 10 years by double declining balance depreciation.
The Shellout Corp. owns a piece of petroleum drilling equipment that cost $300,000.00 and will be depreciated over 10 years by double declining balance depreciation. There is a combined 30% tax rate. Shellout will lease the equipment to others and each year receive $165,000.00 in rent. At the end of 5 years, the firm will sell the equipment for $80,000.00 Calculate the after-tax cash flow for the 5 year period
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