Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the expected after - tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $ 8 8

What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $88,500.00, the tax rate is 20.00%, the equipment is sold in 3 years for $15,200.00, and MACRS depreciation is used where the depreciation rates in years 1,2,3, and 4 are 40.00%,35500,20.00%, and 5.00%, respectively?
$12,160(plus or minus $10)
$2,270(plus or minus $10)
$13,045(plus or minus $10)
$3,540(plus or minus $10)
None of the above is within $10 of the correct answer
image text in transcribed

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

Step: 3

blur-text-image

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

International Finance Theory And Policy

Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz

12th Global Edition

1292417005, 978-1292417004

More Books

Students also viewed these Finance questions

Question

What obstacles interfere with eff ective listening?

Answered: 1 week ago