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    ccuresearcher's Avatar
    ccuresearcher Posts: 2, Reputation: 1
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    #1

    Apr 10, 2008, 06:07 PM
    After tax cash flow
    A company installed its previous generation of computer chip manufacturing equipment 3 years ago. Some of the older equipment will become unnecessary when the company goes into production of its new product. The obsolete equipment, which oringinally costs $40 million, has depreciated straight-line over a tax life of 5 years, but can now be sold for $18 million. The firm's tax rate is 35%. What is the after tax cash flow from the sale of the equipment?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Apr 11, 2008, 03:27 PM
    Please see our guidelines that are posted in red at the top of this page:

    https://www.askmehelpdesk.com/financ...-b-u-font.html
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