Your firm is disposing of machinery purchased 6 years ago


Your firm is disposing of machinery purchased 6 years ago. The current salvage value is $162,000. The machinery's purchase price was $571,000. Shipping and installation costs were $4,000 and $27,000 respectively. Depreciation for 6 years have been taken, based on straight-line for 12 years to a book value of $45,000. The tax rate is 36%. What is the salvage CF?

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Financial Management: Your firm is disposing of machinery purchased 6 years ago
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