A distribution center purchased $100,000 of equipment and depreciated the equipment using the MACRS depreciation schedule with a 7-year ownership. Operating income in year 2 was $200,000 and expenses were $87,000. 

If the business is in the 40% income tax bracket, determine the after-tax cash flow in year 2.

Answer rating: 100% (QA)

The depreciation schedule for the equipment is Year 1 1429 Year 2 2449 Year 3 1749 Y... View the full answer