Problem:
Consider an asset that costs $532,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $171,000.
Required:
Question: If the relevant tax rate is 34 percent, what is the after-tax cash flow from the sale of this asset?
Note: Please explain comprehensively and give step by step solution.