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Use the table below to answer this question.
MACRS 5-year property
Year Rate
1 20.00%
2 32.00%
3 19.20%
4 11.52%
5 11.52%
6 5.76%
Ronnie’s Custom Cars purchased some fixed assets two years ago
for $41,000. The assets are classified as 5-year property
for MACRS. Ronnie is considering selling these assets now so he
can buy some newer fixed assets which utilize the latest in
technology. Ronnie has been offered $22,000 for his old assets.
What is the net cash flow from the salvage value if the tax
rate is 34 percent?
These question having only answer. If you need calculation for
answer, pl don’t purchase it.


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