Question: Consider an asset that costs 640 000 and is depreciated straight line
Consider an asset that costs $640,000 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 $175,000. If the relevant tax rate is 35 percent, what is the after tax cash flow from the sale of this asset?
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