To raise $5 million, southeastern corporation decides to issue bonds. if southeastern does not register the bonds with the sec a
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The after-tax cash flow associated with the sale of equipment is $299,325.
<h3>What is an initial cost?</h3>- The initial cost is the typical cost of buying or producing the goods you have on hand.
- Operating costs, often known as operating costs, are the costs associated with running a company, or with running a machine, part, piece of equipment, or facility.
- They represent the cost of the resources an organization uses just to stay in business.
- The actual or fictitious movement of money is known as cash flow.
- In finance and accounting, cash flow describes the capital inflows and outflows of particular economic units with the aim of achieving a particular goal within a predetermined window of time.
- Making an accurate prediction of future cash flows is required in accounting in addition to measuring current cash flows.
Revenue of 5 years .
Operating cost of 5 years .
Sale of equipment .
Net profit = .
Tax to be deducted at 25% .
Cash flow after tax .
Therefore, the after-tax cash flow associated with the sale of equipment is $299,325.
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