Answer Orignal cost 25,500 Depreciated value 75% Book value(25%)= 25% of 25500 Book value(25%)= 6,375 salvage value 6,100 Cash inflow= salvage value- tax*(salvage value-book value) Cash inflow= 6100-0.4*(6100-6375) Cash inflow= 6,210 Solution Answer Orignal cost 25,500 Depreciated value 75% Book value(25%)= 25% of 25500 Book value(25%)= 6,375 salvage value 6,100 Cash inflow= salvage value- tax*(salvage value-book value) Cash inflow= 6100-0.4*(6100-6375) Cash inflow= 6,210.