A firm has just purchased a new piece of equipment for $23,000. The equipment will cost an additional $2,000 to be delivered and installed. Based on IRS guidelines, the equipment will be depreciated using a 5-year MACRS schedule. The firm plans on using the equipment for three years and then selling the equipment for $15,000. The tax rate facing the firm is 34%. What will be the cash flow from selling the equipment in three years?
$11,956
$9,852
$12,348
$12,152
$9,472
SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE
Get Answers For Free
Most questions answered within 1 hours.