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Computation of net cash flow from the salvage value of the fixed assets
Ronnie's Custom Cars purchased some fixed assets two years ago for $39,000. 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 $19,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34%?
A. $16,358.88
B. $17,909.09
C. $18,720.00
D. $18,904.80
E. $19,000.00
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