What is the after-tax cash flow from the sale of machinery

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1. A project has a 0.40 chance of doubling your investment in a year and a 0.60 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. Salvage Value. Your firm purchased machinery with a 7-year MACRS life for $10.30 million. The project, however, will end after 5 years. If the equipment can be sold for $4.80 million at the completion of the project, and your firm's tax rate is 30%, what is the after-tax cash flow from the sale of the machinery? Use the MACRS depreciation schedule. (Enter your answer in dollars, not in millions.)

After-tax cash flow

Reference no: EM131859855

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