Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life.

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Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $60,500.

Required:  If the relevant tax rate is 34 percent, what is the after tax cash flow from the sale of this asset? (Do not round your intermediate calculations.)

a. $903,882.00. 

b. $39,930.00. 

c. $149,919.00. 

d. $142,780.00.

e. $135,641.00.


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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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