Problem 11-7

Voxland Industries purchased a computer for $10,000, which it will depreciate straight-line over five years to a $1,000 salvage value. The computer will then be sold at that price. The company's marginal tax rate is 32%. Calculate the cash flows associated with the computer from its purchase to its eventual sale including the years in between. (Hint: Depreciate the difference between the cost of the computer and the salvage value. At the end of the depreciation life, a net book value remains that is equal to the salvage value.) Enter your final answers in thousands of dollars. Round your answers to two decimal places. Use a minus sign to indicate negative cash flows or decreases in cash, if required.

Year	Cash Flow
0	$
1	$
2	$
3	$
4	$
5	$