Find out the after-tax cash flow from the sale of asset


Problem:

Consider an asset that costs $511,000 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 $168,000.

Requirement:

If the relevant tax rate is 34 percent, what is the after-tax cash flow from the sale of this asset?

Note: Please show basic calculation

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Accounting Basics: Find out the after-tax cash flow from the sale of asset
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