What would after-tax cash flow be from the equipment sale

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Reference no: EM131526482

1. Today, Gomi Waste Disposal purchased a piece of equipment for 230,000 dollars that will be depreciated to 83,000 dollars over 7 years using straight-line depreciation. What would the after-tax cash flow be from the equipment sale if the equipment is sold in 8 years for 89,000 dollars and the tax rate is 30 percent?

2. For project A, the cash flow effect from the change in net working capital is expected to be 300 dollars at time 2, the level of net working capital is expected to be 1,200 dollars at time 0, and the level of net working capital is expected to be 1,000 dollars at time 2. What is the cash flow effect from the change in net working capital expected to be at time 1?

Reference no: EM131526482

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