Aftertax cash flow from the sale of asset


Consider an asset that costs $777,600 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 $136,200. (Do not round intermediate calculations.)

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Question: If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

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Finance Basics: Aftertax cash flow from the sale of asset
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