What would be the effect of selling the van

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Reference no: EM132027563

We are thinking of buying a new delivery van. It will cost 30000. We will use three years MACRS for depreciation. We think that at the end of the third year we can sell it for 10000. The tax rate is 40%.

What would be the effect of selling the van on the third year cash flow?

Reference no: EM132027563

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