##### Calculate After-Tax Cash Flow at disposal.

account_circle Unassigned
schedule 1 Day
account_balance_wallet \$5

Genetic Insights Co. purchases an asset for \$14,084. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, respectively. Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for \$4,234.

Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.

Oct 4th, 2015

 Cost of Machine \$14,084.00 Year Depreciation % Accumulated Depreciation 1 14.29% \$2,012.60 2 24.49% \$3,449.17 3 17.49% \$2,463.29 4 12.49% \$1,759.09 5 8.93% \$1,257.70 6 8.93% \$1,257.70 \$12,199.56 Cost of machine \$14,084.00 less: accumulated Depreciation -\$12,199.56 Book Value of machine at end 6 th year \$1,884.44 Machine sold \$4,234.00 Book Value of machine at end 6 th year -\$1,884.44 Profit on sale \$2,349.56 Less Tax @30% \$704.87 Cash flow after tax Machine sold \$4,234.00 Less Tax @30% -\$704.87 After-Tax Cash Flow at disposal \$3,529.13
After-Tax Cash Flow at disposal.xlsx

Oct 4th, 2015

...
Oct 4th, 2015
...
Oct 4th, 2015
Aug 17th, 2017
check_circle