If the relevant tax rate is 31 percent what is the aftertax


A) What is the future value of $800 in 22 years assuming an interest rate of 11 percent compounded semiannually?

B) Consider an asset that costs $334,400 and is depreciated straight-line to zero over its 14-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $41,800.

Required :

If the relevant tax rate is 31 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 31 percent what is the aftertax
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