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Yessi15 Yessi15
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Posts: 491
4 years ago
Year 0Year 1Year 2Year 3Year 4Year 5
MACRS
Depreciation Rate20.00%32.00%19.20%11.52%11.52%5.76%

A bakery invests $30,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $22,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 40%?

▸ $5,184

▸ $8,544

▸ $16,656

▸ $8,640
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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whoohoo8whoohoo8
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4 years ago
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