Question: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00%32.00%19.20%11.52%11.52%5.76% A bakery invests $25,000 in a light delivery truck.

 Year 0 Year 1 Year 2 Year 3 Year 4 Year

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00%32.00%19.20%11.52%11.52%5.76% A bakery invests $25,000 in a light delivery truck. This was depreciated using the five-year MACRS schedule shown above. If the company sold it immediately after the end of year 1 for $18,000, what would be the after-tax cash flow from the sale of this asset, given a tax rate of 30% ? A) $17,500 B) $16,400 C) $15,750 D) $16,200

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