Question: You purchase a machine for $1000 and the machine has a five-year useful life. The machine will be depreciated using straight line depreciation and has

You purchase a machine for $1000 and the machine has a five-year useful life. The machine will be depreciated using straight line depreciation and has a salvage value of $200. You plan to sell this machine in four years for $500. Your tax rate is 20%. Based on this information, what is the after-tax cash flow at the time of disposition, assuming that taxes are paid at the time of sale?

		Less than $350
		Between $350 and $400
		Between $400 and $450
		More than $450

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