Question: Use the table below to answer this question. MACRS5-year property Year Rate 1 .20% 2 .32% 3 .19.2% 4 11.52% 5 11.52% 6 5.76% Ronnie's

Use the table below to answer this question.

MACRS5-year property

Year Rate

1 .20%

2 .32%

3 .19.2%

4 11.52%

5 11.52%

6 5.76%

Ronnie's Custom Cars purchased some fixed assets two years ago for $50,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $27,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?

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