Question
We are thinking of buying a new delivery van. It will cost 30000. We will use three years MACRS for depreciation. We think that at
We are thinking of buying a new delivery van. It will cost 30000. We will use three years MACRS for depreciation. We think that at the end of the third year we can sell it for 12000. The tax rate is 30%. What would be the effect of selling the van on the third year cash flow?
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International financial management
Authors: Jeff Madura
13th edition
978-1337099738, 1337099732, 9781337515894, 1337515892, 978-1337587211
