Goodyear Co. is installing a new tire manufacturing line. The previous generation machine line the company purchased

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Goodyear Co. is installing a new tire manufacturing line. The previous generation machine line the company purchased 3 years ago for $55 million and used until now was depreciated straight line over the assumed life of 5 years. The old machine line can be sold, and Goodyear has found a buyer willing to pay $15 million for the line of equipment. Goodyear's tax rate is 21%.

Calculate the after-tax cash flow from the sale of the equipment.
calculate to four decimals

Related Book For answer-question

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

ISBN: 978-1337614689

9th edition

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

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Posted Date: Oct 25, 2023 02:36 AM

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Goodyear Co. is installing a new tire manufacturing line. The previous generation machine line the company purchased

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To calculate the aftertax cash flow from the sale of the equipment we need to consider the following ... View the full answer

Financial Reporting Financial Statement Analysis and Valuation a strategic perspective

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