Southern Co.purchases an asset for $50,000.This asset qualifies as a five-year recovery asset under MACRS,with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%.Southern has a tax rate of 20%.If the asset is sold at the end of four years for $5,000,what is the after-tax cash flow from disposal?

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The Answer of Southern Co.purchases an asset for $50,000.This asset qualifies as a five-year recovery asset under MACRS,with the fixed depreciation percentages as follows: year 1 = 20.00%; year 2 = 32.00%; year 3 = 19.20%; year 4 = 11.52%.Southern has a tax rate of 20%.If the asset is sold at the end of four years for $5,000,what is the after-tax cash flow from disposal?