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Year 2 Year 0 Year 1 Year 3 Year 6 Year 7 Year 4 Year 5 MACRS Depreciation Rate 14.29% 24.49% 17.49% 12.49% 8.93% 8.93%
Year 2 Year 0 Year 1 Year 3 Year 6 Year 7 Year 4 Year 5 MACRS Depreciation Rate 14.29% 24.49% 17.49% 12.49% 8.93% 8.93% 8.92% 4.46% A textile company invests $11 million in an open-end spinning machine. This was depreciated using the seven-year MACRS schedule shown above. If the company sold it immediately after the end of year 3 for $7 million, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 35%? OA. $5,752,600 O B. $1,247,400 C. $3,564,000 O D. $3,436,000
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