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1. ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $835,740 and the total cash expenses are expected to be $463,557. The annual depreciation is $51,304 and the tax rate is 25%. What is the operating cash flow?

2. ABC Company purchased $103,089 of equipment 5 years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $8,493. What is the After-tax Salvage Value if the tax rate is 38 percent? The MACRS allowance percentages are as follows, commencing with year one: 14.29, 24.49, 17.49, 12.49,8.93, 8.92, 8.93, and 4.46 percent.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92843524

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