Problem:
Consider an asset that costs $193,600 and is depreciated straight-line to zero over its 12-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $24,200.
Required :
If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)
- $16,940.00
- $43,681.00
- $379,952.00
- $45,980.00
- $48,279.00
Note: Please provide full description.