You purchase a new piece of equipment for $200,000 to be used in a project that will last 4 years. If it is depreciated on a straight-line basis over 5 years, and you sell this fixed asset at the end of the project (after 4 years) for $35,000, what is your after-tax salvage cash flow? (Assume a 20% tax rate.)

Answer rating: 100% (QA)

Lets break it down 1 Annual Depreciation 200000 35000 5 33000 ... View the full answer