If the relevant tax rate is 40 percent what is the


Consider an asset that costs $730,000 and is depreciated straight line to zero over its eight 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 $192,000. If the relevant tax rate is 40 percent, what is the after-tax cash flow from the sale of this assets?

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Finance Basics: If the relevant tax rate is 40 percent what is the
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