Question: What is the current book value of the computer system? (round to 2 decimal places) What is the NSV from selling the computer system today?

What is the current book value of the computer system? (round to 2 decimal places)

What is the NSV from selling the computer system today? (round to 2 decimal places)

A firm is trying to determine the cash flow from selling an old computer system to an interested buyer. The computer system was purchased five years ago for $419,372.00. The system was depreciated using the 7-year MACRS schedule. The firm has an offer this morning for $71,960.00. The tax rate facing the firm is 38.00%. The firm will only accept the offer if it generates a cash flow greater than $60,281.00

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