Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being depreciated straight line to 0 over 8 years. If Margaret's Bakery sells the display cases at the following prices what are the after-tax cash flows to Margaret's Bakery? Use 40% for the effective tax rate. A $25,000.00 B $30,000.00 C $35,000.00 D $10,000.00
Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being depreciated straight line to 0 over 8 years. If Margaret's Bakery sells the display cases at the following prices what are the after-tax cash flows to Margaret's Bakery? Use 40% for the effective tax rate. A $25,000.00 B $30,000.00 C $35,000.00 D $10,000.00
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 5PROB
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Margaret's Bakery is considering a replacement of their baked goods display cases. The current cases were purchased three years ago at a total cost of $40,000 and are being
A $25,000.00
B $30,000.00
C $35,000.00
D $10,000.00
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