required to calculate operating cash flow, net working capital and capital spending.  calculate the after-tax salvage or would it just be $0?

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Year MACRS Percentage Beginning Book Value Depreciation Ending Book Value 1 20.00% 550,000 0.20 x 550,000= 440,000 110,000 2 32.00% 440,000 0.32 x 550,000= 176,000 264,000 3 19.20% 264,000 0.192 x 550,000= 158,400 105,600 + 11.52% 158,400 0.1152 x 550,000= 95,040 63360 5 11.52% 95,040 0.1152 x 550,000= 31,680 63360 00 6 5.76% 31,680 0.576 x 550,000 31680 Year MACRS Percentage Beginning Book Value Depreciation Ending Book Value 1 20.00% 550,000 0.20 x 550,000= 440,000 110,000 2 32.00% 440,000 0.32 x 550,000= 176,000 264,000 3 19.20% 264,000 0.192 x 550,000= 158,400 105,600 + 11.52% 158,400 0.1152 x 550,000= 95,040 63360 5 11.52% 95,040 0.1152 x 550,000= 31,680 63360 00 6 5.76% 31,680 0.576 x 550,000 31680

Answer rating: 100% (QA)

To calculate the aftertax salvage value we first need to determine the net salvage value at the end ... View the full answer