Your firm purchased machinery for $9.5 million and received immediate 100% bonus depreciation. The project will end after 5 years. If the equipment can be sold for $4.0 million at the completion of the project, and your firm's tax rate is 21%, what is the after-tax cash flow from the sale of the machinery? Note: Enter your answer in millions rounded to 4 decimal places. After-tax cash flow millions

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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Your firm purchased machinery for $9.5 million and received immediate 100% bonus depreciation. The project will end after 5 years. If
the equipment can be sold for $4.0 million at the completion of the project, and your firm's tax rate is 21%, what is the after-tax cash
flow from the sale of the machinery?
Note: Enter your answer in millions rounded to 4 decimal places.
After-tax cash flow
millions
Transcribed Image Text:Your firm purchased machinery for $9.5 million and received immediate 100% bonus depreciation. The project will end after 5 years. If the equipment can be sold for $4.0 million at the completion of the project, and your firm's tax rate is 21%, what is the after-tax cash flow from the sale of the machinery? Note: Enter your answer in millions rounded to 4 decimal places. After-tax cash flow millions
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