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Your firm purchased machinery for $ 1 0 Million in January 2 0 1 8 . The machinery falls into an asset class that has

Your firm purchased machinery for $10 Million in January 2018. The machinery falls into an asset class that has a CCA rate of 25%. The project will end after 5 years of purchase. If the equipment can be sold for $4 million at the completion of the project and your firms tax rate is 35%. What is the after- tax cash flow from the sale of the machinery? Assume that the firm has no other assets in the class, and that the asset class will be terminated upon the sale of the machinery.

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