A firm buys capital equipment for $1000 in Year 0. The annual depreciation, starting in Year 1, is $200. In Year 3, immediately after taking the third depreciation, the firm sells the equipment for $450.

1. What is the cash from asset sale?

Provide your answer rounded to no decimals (for example, if your answer is 834.2739, enter 834 in the answer box; if your answer is 834.6793, enter 835).

Enter inflows as a positive number and outflows as a negative number.

2. What is the profit from asset sale?

Provide your answer rounded to no decimals (for example, if your answer is 834.2739, enter 834 in the answer box; if your answer is 834.6793, enter 835).

Enter gains as a positive number and losses as a negative number.

Answer rating: 100% (QA)

1 The cash from the asset sale can be calculated as follows Cash from asset sale Selli... View the full answer