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Problem:

Consider an asset that costs $193,600 and is depreciated straight-line to zero over its 12-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 $24,200.

Required :

If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)

  • $16,940.00
  • $43,681.00
  • $379,952.00
  • $45,980.00
  • $48,279.00

Note: Please provide full description.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91162511

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