### What is the after-tax cash flow from the salvage value

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For your reference, the following are depreciation percentages for a 5-year MACRS property, for years 1 through 6 respectively: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%. A firm purchased some fixed assets two years ago for \$40,300. The assets are classified as 5-year property for MACRS. Now, the firm is considering selling these assets, so it can buy some newer fixed assets which utilize the latest in technology. The current market value of the old assets is \$23,146. What is the after-tax cash flow from the salvage value if the tax rate is 32 percent?

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