If the company sold it immediately after the end of year 2, Financial Management

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If the company sold it immediately after the end of year 2

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 MACRS Depreciation Rate 20.00% 32.00% 19.20% 1.52% 11.52% 5.76% A bakery invests $36000 in a light delivery truck. This was depreciated using the five- year MACRS schedule shown above. If the company sold it immediately after the end of year 2 for $25000, what would be the after- tax cash flow from the sale of this asset, given a tax rate of 40%?

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Financial Management: If the company sold it immediately after the end of year 2

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