What are your after-tax proceeds from the sale

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Reference no: EM132071133

1. We use payback period as one method to determine whether of not to undertake a projects. It is a simple method that works well for small investments. It does have weaknesses which include the following EXCEPT:

a. the appropriate payback period is subjectively determined

b. it does not incorporate the time value of money

c. t does not recognize all cash flows

d. it only works with smaller costs of capital

2. You decide to sell a price of equipment for $5,000. It had been depreciated to $3,000. The original purchase price was $6,000. Your tax rate is 20%. What are your after-tax proceeds from the sale?

A. $600

B. $5,000

C. $4,600

D. $5,400

E. $400

Reference no: EM132071133

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