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Billy Bob's Monster Trucks is considering the purchase of some new vehicles. The total cost for the vehicles is $404,800 and they are to be depreciated straight-line to zero over 9 years. The vehicles will be used for 4 years, after which they can be sold for $50,600. If the relevant tax rate is 33 percent, what is the after-tax cash flow from the sale of this asset? (Do not round your intermediate calculations.) NOTE: Taxes are affected when the asset is sold at either a gain or loss over book value.

Financial Management, Finance

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