The Following Data Is Associated with a Proposed Replacement Project

Multiple Choice

The following data is associated with a proposed replacement project: A machine that originally cost $25,000 and was depreciated on a straight line basis has one year of its expected 5-year life remaining. Its current market value is $12,000. The corporate tax rate is 34%. The cash flow from disposing of the old machine, is:

A) $12,000.
B) $ 9,620.
C) ($ 9,620.)
D) $14,380.