Problem:
Consider an asset that costs $640,000 and is depreciated straight-line to zero over its eight-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 $175,000.
Required:
Question: If the relevant tax rate is 35 percent, what is the after-tax cash flow from the sale of this asset?
Note: Please provide full description.