What is the expected after-tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548,860.00, the tax rate is 39.9 percent, the equipment will be sold in 3 years for $98,800.00, and the equipment will be depreciated to $72,600.00 over 12 years using straight-line depreciation? O $106,885.74 (plus or minus $10) $262,538.29 (plus or minus $10) -$72,688.20 (plus or minus $10) $230,867.00 (plus or minus $10) None of the above is within $10 of the correct answer

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
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 What is the expected after - tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548, 860.00, the tax rate is 39.9 percent, the equipment will be sold in 3 years for $98, 800.00, and the equipment will be depreciated to $72, 600.00 over 12 years using straight - line depreciation? $106, 885.74 (plus or minus $10) $262, 538.29 (plus or minus $10) - $72, 688.20 (plus or minus $10) $230,867.00 (plus or minus $10) None of the above is within $10 of the correct answer

00000
$262,538.29 (plus or minus $10)
-$72,688.20 (plus or minus $10)
$230,867.00 (plus or minus $10)
None of the above is within $10 of the correct answer
What is the expected after-tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548,860.00, the tax rate is 39.9 percent, the
equipment will be sold in 3 years for $98,800.00, and the equipment will be depreciated to $72,600.00 over 12 years using straight-line depreciation?
$106,885.74 (plus or minus $10)
Transcribed Image Text:00000 $262,538.29 (plus or minus $10) -$72,688.20 (plus or minus $10) $230,867.00 (plus or minus $10) None of the above is within $10 of the correct answer What is the expected after-tax cash flow from selling a piece of equipment if Probst purchases the equipment today for $548,860.00, the tax rate is 39.9 percent, the equipment will be sold in 3 years for $98,800.00, and the equipment will be depreciated to $72,600.00 over 12 years using straight-line depreciation? $106,885.74 (plus or minus $10)
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