Question: You purchased a machine for $ 1 . 1 6 $ 1 . 1 6 million three years ago and have been applying straight -

You purchased a machine for
$ 1.16$1.16
million three years ago and have been applying straight-line depreciation to zero for a seven-year life. Your tax rate is
21%21%.
If you sell the machine today(after three years of depreciation) for
$ 727 comma 000$727,000,
what is your incremental cash flow from selling the machine?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

12. Which one of the following would be internal evidence of impairment? New technological innovations were producing better machines. 0.b. There were legal and regulatory changes affecting the...

Q:

TTT Inc. currently has one product, low-priced cordless drills and a variety of drill bits. TTT Inc. has decided to sell a new line of medium-priced cordless drills. The project is expected to last...

Q:

X=1 Y=2 Question 2: Entertainment Showland, one of the leading entertainment center chains in North America, decided to establish a comprehensive entertainment center in Istanbul due to its...

Q:

TTT Inc. currently has one product, low-priced cordless drills and a variety of drill bits. TTT Inc. has decided to sell a new line of medium-priced cordless drills. The project is expected to last...

Q:

TTT Inc. currently has one product, low-priced cordless drills and a variety of drill bits. TTT Inc. has decided to sell a new line of medium-priced cordless drills. The project is expected to last...

Q:

T Inc. currently has one product, low-priced cordless drills and a variety of drill bits. TT Inc. has decided to sell a new line of medium-priced cordless drills. The project is expected to last 10...

Q:

3. MBI Corp. is considering purchasing one of two types of machinery. The first type, costing $800,000, is expected to last for 10 years. The second type, costing $1.2 million, is expected to last...

Q:

Question 1: Cost of Capital A company is considering a 5-year project to produce and sell machines. The project will use land that was purchased for $9.0 million three years ago for a different...

Q:

Anyone answer? Tixsar Pte Ltd is a well-known cleaning brand that was established a few years. They manufacture and supply a range of home care cleaning product. However, aerosol disinfectant is not...

Q:

(Just Question 2 please) Question 1 (25 points): Consider an investment that has a project life of 10 years and requires an investment of $1,500,000.00 at time zero for machinery and equipment to be...

Q:

For the steel countershaft specified in the table, find the deflection and slope of the shaft at point A. Use superposition with the deflection equations in Table A9. Assume the bearings constitute...

Q:

Consider Exhibit 154. Explain the cultural differences between the United States and Brazil. Exhibit154 Uncertainty Avoidance Long-Term Orientation High Power Distance Country Japan South Korea...

Q:

the income stabement will a . be overstated by $ 3 , 3 0 0 . b . be overstated by $ 1 5 , 0 0 0 . c . be understated by $ 3 , 3 0 0 . d . not be impacted because Accumulated Depreciation is reported...

Q:

Can you elucidate the role of molecular chaperones and protein quality control systems in maintaining the integrity and homeostasis of the cytoplasm, particularly under conditions of cellular stress...