What is the expected after-tax cash flow from selling a piece of equipment if XYZ purchases the equipment today for $89,800.00, the tax rate is 23.00%, the equipment is sold in 2 years for $16,600.00, and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40.00%, 35.00%, 20.00%, and 5.00%, respectively?

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To calculate the expected aftertax cash flow from selling a piece of equipment we need to consider t... View the full answer