Compute cumulative cash benefit after sale on transaction

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Reference no: EM131188189

Please show your work. Frances bought a car for $44,500 as a business investment opportunity. She is allowed to depreciate over 10 years and take it as business tax deduction. At the end of the 6th year she sells this car for $22,000. Compute the cumulative cash benefit after sale on this transaction. Assume that Frances can earn 4.5% after tax returns and is in 25% tax bracket. Tax rate on gain is 15%.

Reference no: EM131188189

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