Question
Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an investment in net
Your firm is selling a 3-year old machine that has a 5-year class life. The machine originally cost $580,000 and required an investment in net working capital of $20,000 at the time of installation (recoverable when the machine is no longer in use). Your firm is selling the asset for $180,000. Your firm's marginal tax rate is 34%. What is the cash flow effect from selling this machine?
| $212,680 |
| $202,680 |
| $207,680 |
| $217,680 |
| $197,680 |
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American Public School Finance
Authors: William A. Owings, Leslie S. Kaplan
3rd Edition
113849996X, 978-1138499966
