Ganyao's firm, InvesTek, manufactures silicon wafers for the high-tech industry. His firm just paid $7,600,000 for a piece of equipment that's classified as a 3-year asset according to MACRS. His firm plans to use the equipment for a project that lasts 4 years, and then sell the equipment for $655,000. InvesTek's corporate tax rate is 35%. MACRS depreciation rates are as follows: Year 1: 33.33%, Year 2: 44.45%, Year 3: 14.81%, and Year 4: 7.41%. What is the net after-tax salvage cash flow from selling this equipment at the end of the project? selling price= net book value= gain/loss= taxes= net cash flow=

Ganyao's firm, InvesTek, manufactures silicon wafers for the high-tech industry. His firm just paid $7,600,000 for a piece of equipment that's classified as a 3-year asset according to MACRS. His firm plans to use the equipment for a project that lasts 4 years, and then sell the equipment for $655,000. InvesTek's corporate tax rate is 35%. MACRS depreciation rates are as follows: Year 1: 33.33%, Year 2: 44.45%, Year 3: 14.81%, and Year 4: 7.41%. What is the net after-tax salvage cash flow from selling this equipment at the end of the project? selling price= net book value= gain/loss= taxes= net cash flow=

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section2.A: Taxes

Problem 7P

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