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Problem:

Consider an asset that costs $202,400 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $25,300.

Required :

Question: If the relevant tax rate is 33 percent, what is the aftertax cash flow from the sale of this asset?

Note: Please show how you came up with the solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162670

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