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A. Consider an asset that costs $1018000 and is depreciated straight-line to zero over its 14-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $206000. If the relevant tax rate is 0.28, what is the aftertax cash flow from the sale of this asset (SVNOT)?

B. Consider an asset that costs $801000 and is depreciated straight-line to 24000 over its 9-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $117000. If the relevant tax rate is 0.24, what is the aftertax cash flow from the sale of this asset (SVNOT)?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92429596

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