Net cash flow from the salvage value


Problem:

Kustom Cars purchased a fixed asset two years ago for $39,000 and sold it today for $19,000. The assets are classified as 5-year property for MACRS. The MACRS table values are .2000, .3200, .1920, .1152, .1152, and .0576 for Years 1 to 6, respectively.

Required:

Question: What is the net cash flow from the salvage value if the tax rate is 35 percent?

  • $18,020
  • $19,098
  • $18,720
  • $18,902
  • $19,000

Note: Please provide full description.

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: Net cash flow from the salvage value
Reference No:- TGS0894010

Expected delivery within 24 Hours