Computing the Terminal-Year FCF: Miles Cyprus Corp

question 7

Multiple Choice

Computing the terminal-year FCF: Miles Cyprus Corp. purchased a truck that currently has a book value of $1,000. If the firm sells the truck for $5,000 today, then what is the amount of cash that it will net after taxes if the firm is subject to a 30 percent marginal tax rate?

• A) $1,200
• B) $3,800
• C) $4,000
• D) $5,000

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