XYZ Company bought a new machine that cost $800,000 on 1/1/21. The machine had a useful life of 8 years. XYZ Company used straight-line depreciation with an estimated salvage value of $0. XYZ Company is subject to an income tax rate of 30%. XYZ Company sold the machine on 1/1/26 (after using the machine for exactly 5 full years.) In the next 3 questions, you are to determine the Net Cash Inflow (NCF) from the sale of the machine on 1/1/26.

If the machine was sold on 1/1/26 for $375,000, the Net Cash Inflow (NCF) is?

If the machine was sold on 1/1/26 for $290,000, the Net Cash Inflow (NCF) is?

If the machine was sold on 1/1/26 for $300,000, the Net Cash Inflow (NCF) is?

Answer rating: 100% (QA)

To determine the Net Cash Inflow NCF from the sale of the machine on 1126 we need to calculate the b... View the full answer