Quick Computing installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of thatolder equipment will become unnecessary when the company goes into production of its new product. The obsoleteequipment, which originally cost $37.50 million, has been depreciated straight-line over an assumed tax life of 5 years, butit can be sold now for $17.50 million. The firm's tax rate is 30%. What is the after-tax cash flow from the sale of theequipment? (Enter your answer in millions rounded to 1 decimal place.)After-tax cash flowmillion

Step 1: The calculation of the after-tax cash flow AB1Original cost $ 37.5 2Useful…

Answered: Quick Computing installed its previous…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 9P

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