A group of students is considering launching a food truck, and operating it for five years...

 

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A group of students is considering launching a food truck, and operating it for five years after graduating from college. The food truck will cost $100,000 to purchase and furnish with the proper cooking equipment. The food truck can be depreciated at a rate of 15% of the purchase price each year. If the students are able to sell the food truck for $90,000 after five years (when they are done running the business) and if they pay taxes at a rate of 15%, what will be the cash flow generated in the fifth year from selling the truck? A group of students is considering launching a food truck, and operating it for five years after graduating from college. The food truck will cost $100,000 to purchase and furnish with the proper cooking equipment. The food truck can be depreciated at a rate of 15% of the purchase price each year. If the students are able to sell the food truck for $90,000 after five years (when they are done running the business) and if they pay taxes at a rate of 15%, what will be the cash flow generated in the fifth year from selling the truck?

Answer rating: 100% (QA)

calculate the cash flow generated in the fifth year from selling the truck 1 Calculate the depreciat... View the full answer