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 $38,000

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

MACRS

Depreciation Rate

20.00%

32.00%

19.20%

11.52%

5.76%

A bakery invests

$38,000

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 2 for

$21,000,

what would be the after-tax cash flow from the sale of this asset, given a tax rate of

20%?

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