Sal v a g e V alu e . Quick Computing (from problem 5) installed its previous generation of com- 1 answer below »

Sal v a g e V alu e . Quick Computing (from problem 5) installed its previous generation of com- puter chip manufacturing equipment 3 years ago. Some of that older equipment will become unnecessary when the company goes into production of its new product. The obsolete equip- ment, which originally cost $40 million, has been depreciated straight line over an assumed tax life of 5 years, but it can be sold now for $18 million. The firm’s tax rate is 35 percent. What is the after-tax cash flow from the sale of the equipment?