I have solved the first part and am just looking for help wi

I have solved the first part and am just looking for help with the second part, i.e. finding the after-tax cash flows.

Brock Florist Company buys a new delivery truck for $29,000, a light truck. Using MACRS tables for a five-year asset, calculate the book value at the end of the year 4. Brock Florist Company sold its delivery truck after three years (Prob. 1) Using a 30% tax rate, what is the after-tax salvage value for the truck at each of the following sale prices? Sales Price ($) $15,000 $10,000 $5,000 After-Tax Cash Flow (S)

Solution

Cost of Delivery Truck = $29,000

Depreciation Expense, Year 1 = 20.00% * $29,000
Depreciation Expense, Year 1 = $5,800.00

Depreciation Expense, Year 2 = 32.00% * $29,000
Depreciation Expense, Year 2 = $9,280.00

Depreciation Expense, Year 3 = 19.20% * $29,000
Depreciation Expense, Year 3 = $5,568.00

After-tax Cash Flow, Year 1 = Sales Price * (1 - tax) + tax * Depreciation
After-tax Cash Flow, Year 1 = $15,000.00 * (1 - 0.30) + $5,800.00 * 0.30
After-tax Cash Flow, Year 1 = $12,240.00

After-tax Cash Flow, Year 2 = Sales Price * (1 - tax) + tax * Depreciation
After-tax Cash Flow, Year 2 = $10,000.00 * (1 - 0.30) + $9,280.00 * 0.30
After-tax Cash Flow, Year 2 = $9,784.00

After-tax Cash Flow, Year 3 = Sales Price * (1 - tax) + tax * Depreciation
After-tax Cash Flow, Year 3 = $5,000.00 * (1 - 0.30) + $5,568.00 * 0.30
After-tax Cash Flow, Year 3 = $5,170.40