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TJ Trucking purchases an asset for $172990. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52%, respectively.

TJ Trucking has a tax rate of 30%. The asset is sold at the end of year 4 for $13717.

Calculate the after-tax cash flow at disposal.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92868175

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