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 $37.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but it 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 the equipment? (Enter your answer in millions rounded to 1 decimal place.) After-tax cash flow million
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 $37.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but it 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 the equipment? (Enter your answer in millions rounded to 1 decimal place.) After-tax cash flow million
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 9P
Related questions
Question
![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 $37.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but
it 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 the
equipment? (Enter your answer in millions rounded to 1 decimal place.)
After-tax cash flow
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F851cdc79-47dd-458a-a870-865f0c09e03f%2F43f7b9fb-3581-44ae-9a44-036e770e0389%2Fcuyhrem_processed.png&w=3840&q=75)
Transcribed Image Text: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 $37.50 million, has been depreciated straight-line over an assumed tax life of 5 years, but
it 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 the
equipment? (Enter your answer in millions rounded to 1 decimal place.)
After-tax cash flow
million
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