Use the table below to answer this questionmacrs 5-year, Ask an Expert

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Use the table below to answer this question.

MACRS 5-year property

Year

Rate 1 20.00% 2 32.00% 3 19.20% 4 11.52% 5 11.52% 6 5.76%

Ronnie's Custom Cars purchased some fixed assets two years ago for $80,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $42,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34 percent?

$38,400.00

$35,553.60

$40,776.00

$32,420.16

$42,000.00

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92330677

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