A machine is purchased for $500,000 and is used through the end of Year 2.The machine will be depreciated using the 3-Year MACRS schedule.At the end of Year 2,the machine is sold for $75,000.What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 40%?
A)$37,050
B)$15,180
C)$37,950
D)$59,820

Question

A machine is purchased for $500,000 and is used through the end of Year 2.The machine will be depreciated using the 3-Year MACRS schedule.At the end of Year 2,the machine is sold for $75,000.What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 40%?
A)$37,050 
B)$15,180 
C)$37,950 
D)$59,820

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The Answer of 
A machine is purchased for $500,000 and is used through the end of Year 2.The machine will be depreciated using the 3-Year MACRS schedule.At the end of Year 2,the machine is sold for $75,000.What is the after-tax cash flow from the sale of the machine at the end of Year 2 if the firm's marginal tax rate is 40%?
A)$37,050 
B)$15,180 
C)$37,950 
D)$59,820

A Machine Is Purchased for $500,000 and Is Used Through