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XYZ Company bought a new machine that cost $800,000 on 1/1/21. The machine had a useful life of 8 years. XYZ Company used straight-line depreciation

XYZ Company bought a new machine that cost $800,000 on 1/1/21. The machine had a useful life of 8 years. XYZ Company used straight-line depreciation with an estimated salvage value of $0. XYZ Company is subject to an income tax rate of 30%. XYZ Company sold the machine on 1/1/26 (after using the machine for exactly 5 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/26.

  1. If the machine was sold on 1/1/26 for $375,000, the Net Cash Inflow (NCF) is:

A. $375,000

B. $252,500

C. $352,500

D. $452,500

  1. If the machine was sold on 1/1/26 for $290,000, the Net Cash Inflow (NCF) is:

A. $290,000

B. $493,000

C. $393,000

D. $293,000

  1. If the machine was sold on 1/1/26 for $300,000, the Net Cash Inflow (NCF) is:

A. $300,000

B. $400,000

C. $200,000

D. $500,000

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