Consider an asset that costs $548,000 and is depreciated straight-line to zero over its eight-year tax life.
Fantastic news! We've Found the answer you've been seeking!
Question:
Consider an asset that costs $548,000 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 $105,000.
If the relevant tax rate is 35 percent, what is the after-tax cash flow from the sale of this asset? You can assume that there will be no assets left in the class in six years.
Related Book For
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
Posted Date: