Deer and doe purchased 100000 of equipment six years ago, Financial Management

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Deer and doe purchased 100000 of equipment six years ago

Deer and Doe purchased $100,000 of equipment six years ago. The equipment is 7-year MACRS property. The firm is selling this equipment today for $24,500. What is the after-tax cash flow from this sale if the tax rate is 35 percent?

A. $15,925.00

B. $20,608.00

C. $21,544.60

D. $25,785.40

E. $27,455.40

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Financial Management: Deer and doe purchased 100000 of equipment six years ago

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