Question
You purchased a machine for $1.16 million three years ago and have been applyingstraight-line depreciation to zero for aseven-year life. Your tax rate is 35%.
You purchased a machine for $1.16 million three years ago and have been applyingstraight-line depreciation to zero for aseven-year life. Your tax rate is 35%. If you sell the machine today(after three years ofdepreciation) for $762,000, what is your incremental cash flow from selling themachine?
Your total incremental cash flow will be $__(Round to the nearestcent.)
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
