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unanswered A firm is trying to determine the cash flow from selling an old computer system to an interested buyer. The comput

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Answer #1

Book Value = Purchase Price – Depreciation for 5 years

= 422318*(100-14.29-24.49-17.49-12.49-8.93)%

= $94,219.15

Selling price = $74,087

Loss on Sale = $20,132.15

Tax savings = $7046.25

Net Selling value or cash flow = $74087 + 7046.25

= $81,133.25

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