Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $38.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $17.70 million. The firm’s tax rate is 30%. What is the after-tax cash flow from the sale of the equipment
Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $38.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but it can be sold now for $17.70 million. The firm’s tax rate is 30%. What is the after-tax cash flow from the sale of the equipment
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which originally cost $38.50 million, has been
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I need the Operating Cash flows and this after tax does not come as correct on my hoemwork
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