A machine costs $2,067,150 and is depreciated using the straight-line method over 8 years. The equipment is to be used on a project lasting 8 years and has no market value at the end of the project. What is the after-tax cash flow from the disposal of this machine if the tax rate of the firm is 32% and the discount rate is 10%?

Answer rating: 100% (QA)

To find the aftertax cash flow from the disposal of the machine we need to calculate the salvage val... View the full answer