Farris Industrial purchased a machine five years ago at a cost of $164,900. The machine is being depreciated using the straight-line method over eight years. The tax rate is 21 percent and the discount rate is 14 percent. If the machine is sold today for $42,500, what will the aftertax salvage value be?

 Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets are classified as 5-year property for MACRS. The MACRS table values are 0.2000, 0.3200, 0.1920, 0.1152, 0.1152, and 0.0576 for Years 1 to 6, respectively. What is the net cash flow from the salvage value if the tax rate is 21 percent? 

Answer rating: 100% (QA)

Farris Industrial To calculate the aftertax salvage value for the machine sold by Farris Industrial we need to consider the machines original cost its ... View the full answer