An asset costs $800,000. The asset is depreciated straight-line to O value in 8 years. The...

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An asset costs $800,000. The asset is depreciated straight-line to O value in 8 years. The asset is used in a 5-year project. At the end of the project, the asset is sold for $200,000. The tax rate is 30%. Based on the above information answer the following questions. a) What is the book value of the asset after 5 years? (3 marks) b) Will you make a gain or loss on the sale of the asset when you sell the asset for $200,000? Explain. (1 mark) c) What is the after-tax cash (in or out) flow from the sale of the asset? (2 marks) An asset costs $800,000. The asset is depreciated straight-line to O value in 8 years. The asset is used in a 5-year project. At the end of the project, the asset is sold for $200,000. The tax rate is 30%. Based on the above information answer the following questions. a) What is the book value of the asset after 5 years? (3 marks) b) Will you make a gain or loss on the sale of the asset when you sell the asset for $200,000? Explain. (1 mark) c) What is the after-tax cash (in or out) flow from the sale of the asset? (2 marks)