Problem:
Consider an asset that costs $675,500 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 $136,900.
Required:
If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset?
Note: Please show the work not just the answer.