Question
What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86,600.00, the tax rate is
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What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $86,600.00, the tax rate is 30.00%, the equipment is sold in 2 years for $18,700.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively?
$19,585 (plus or minus $10)
$13,090 (plus or minus $10)
$15,155 (plus or minus $10)
$22,535 (plus or minus $10)
None of the above is within $10 of the correct answer
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Personal Financial Planning For Executives And Entrepreneurs
Authors: Michael J. Nathanson, Jeffrey T. Craig, Jennifer A. Geoghegan, Nadine Gordon Lee, Michael A. Haber, Seth P. Hieken, Matthew C. Ilteris, D. Scott McDonald, Joseph A. Salvati, Stephen R. Stelljes
1st Edition
3030405273, 978-3030405274
