If the relevant tax rate is 30 percent what is the aftertax


Consider an asset that costs $422,400 and is depreciated straight-line to zero over its 4-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $52,800.

Required :

If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset?

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Financial Management: If the relevant tax rate is 30 percent what is the aftertax
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