What is the after-tax cash flow from the sale of the


Your firm purchased machinery for $10 million 3 years ago. It has been depreciated straight-line over an assumed 5 year life, but it can now be sold for $5 million. The firm’s tax rate is 35%. What is the after-tax cash flow from the sale of the equipment?

$5,000,000

$350,000

$650,000

$4,650,000

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Financial Management: What is the after-tax cash flow from the sale of the
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