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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

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  • 1. 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