As production manager, you are overseeing the shutdown of a production line for a discontinued product. Some of the equipment can be sold for a total price of $60,000. The equipment was originally purchased 4 years ago for $400,000 and is being depreciated according to the 5-year MACRS schedule. If your tax rate is 40%, what is the after-tax cash flow you can expect from selling the equipment?

Answer rating: 100% (QA)

Answer Book Value after 4 years Cost of Equipment 1 Accumulat... View the full answer