What was the present worth of the tax impact on selling

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Reference no: EM132027451

Theo started his food catering business in 2010. For his business, he bought an old truck for $12,500 in 2010. His business is subject to a corporate tax rate of 25%, the CCA rate of 20% and the after-tax MARR of 10%.

If the truck was sold for $4,500 in 2014, what was the present worth of the tax impact on selling of the car?

Reference no: EM132027451

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