Problem:
Consider an asset that costs $684,600 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $135,300.(Do not round intermediate calculations.)
Task:
Question: If the relevant tax rate is 35 percent, what is the after tax cash flow from the sale of this asset?
Note: Please describe comprehensively and provide step by step solution.