Question
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00% 32.00% 19.20% 11.52% 11.52% 5.76% A bakery invests $38,000
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| MACRS Depreciation Rate | 20.00% | 32.00% | 19.20% | 11.52% | 11.52% | 5.76% |
A bakery invests
$38,000
in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for
$21,000,
what would be the after-tax cash flow from the sale of this asset, given a tax rate of
20%?
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Financial Markets And Institutions
Authors: Jeff Madura
5th Edition
0324027443, 9780324027440
