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MACRS
Depreciation Rate14.29%24.49%17.49%12.49%8.93%8.92%8.93%4.46%

A textile company invests $12 million in an open-end spinning machine. This was depreciated using the seven-year MACRS schedule shown above. If the company sold it immediately after the end of year 3 for $7 million, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%?

▸ $5,699,520

▸ $1,300,480

▸ $1,950,720

▸ $2,076,880
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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$5,699,520
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2 weeks ago
Exactly what I needed for my project, TYSM
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