Question
Your firm purchased machinery for $10 million 3 years ago. It has been depreciated straight-line over an assumed 5 year life, but it can now
Your firm purchased machinery for $10 million 3 years ago. It has been depreciated straight-line over an assumed 5 year life, but it can now be sold for $5 million. The firms tax rate is 35%. What is the after-tax cash flow from the sale of the equipment?
| $5,000,000 |
| $350,000 |
| $650,000 |
| $4,650,000 |
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
2nd Edition
0765625229, 9780765625229
