A company purchases machinery for $245 and sells it several years later for $205. At the time of sale, accumulated depreciation is $128. If the company's tax rate is 35%, what is the total after-tax cash flow that will result from selling this asset?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 18E
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A company purchases machinery for $245 and sells it several years
later for $205. At the time of sale, accumulated depreciation is
$128. If the company's tax rate is 35%, what is the total after-tax
cash flow that will result from selling this asset?
Transcribed Image Text:A company purchases machinery for $245 and sells it several years later for $205. At the time of sale, accumulated depreciation is $128. If the company's tax rate is 35%, what is the total after-tax cash flow that will result from selling this asset?
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