is $190,000, and shipping costs will be $5,700. It will cost another $24,700 to modify it...

 

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is $190,000, and shipping costs will be $5,700. It will cost another $24,700 to modify it for special use by your firm, and an additional $11,400 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 27,800 at the end of three years. The equipment is expected to generate revenues of $181,000 per year with annual operating costs of $92,000. The firm's marginal tax rate is 40.0%. What is the after-tax operating cash flow for year 3? is $190,000, and shipping costs will be $5,700. It will cost another $24,700 to modify it for special use by your firm, and an additional $11,400 to install it. The equipment falls in the MACRS 3-year class that allows depreciation of 33% the first year, 45% the second year, 15% the third year, and 7% the fourth year. You expect to sell the equipment for 27,800 at the end of three years. The equipment is expected to generate revenues of $181,000 per year with annual operating costs of $92,000. The firm's marginal tax rate is 40.0%. What is the after-tax operating cash flow for year 3?

Answer rating: 100% (QA)

Heres a breakdown of the aftertax operating cash flow for year 3 Project parameters Equipment price ... View the full answer