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Use the MACRS 5-year property table below to answer this question: Year 1 6 2 3 4 5 20.00% 32.00% 19.20% 11.52% 11.52% Rate 5.76%

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Use the MACRS 5-year property table below to answer this question: Year 1 6 2 3 4 5 20.00% 32.00% 19.20% 11.52% 11.52% Rate 5.76% Ronnie's Custom Cars purchased some fixed assets two years ago for $40,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $22,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34%? $19,200.00 $22,000.00 $16,870.08 $21,048.00 $18,436.80

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