Aaa has a tax rate of 30 the asset is sold at the end of


AAA purchases an asset for $153274. 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. AAA has a tax rate of 30%. The asset is sold at the end of year 4 for $11211.

Calculate the after-tax cash flow at disposal.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Aaa has a tax rate of 30 the asset is sold at the end of
Reference No:- TGS02278519

Now Priced at $20 (50% Discount)

Recommended (97%)

Rated (4.9/5)