We are thinking of buying a new delivery van it will cost, Financial Management

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We are thinking of buying a new delivery van it will cost

We are thinking of buying a new delivery van. It will cost 30000. We will use three years MACRS for depreciation.

We think that at the end of the third year we can see it for 10000. The tax rate is 40%.

What would be the effect of selling the van on the third year cash flow?

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Financial Management: We are thinking of buying a new delivery van it will cost

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Financial Management: We are thinking of buying a new delivery van it will cost

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