Question
Your firm is selling a 4-year old machine that has a 11-year class life. The machine originally cost $328,000 and was originally depreciated straight-line to
Your firm is selling a 4-year old machine that has a 11-year class life. The machine originally cost $328,000 and was originally depreciated straight-line to zero salvage value using the 11-year life. Your firm is selling the asset for $107,000. Your firm's marginal tax rate is 34%. What is the total cash flow, net of taxes, from selling the machine? Assume that the firm is otherwise profitable. Set your calculator to 4 decimal places and round to a whole number at the end. For example, if your answer is 1,000 enter it as 1000. DO NOT ENTER THE DOLLAR SIGN.
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