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Accounting

Problem:

Consider an asset that costs $202,400 and is depreciated straight-line to zero over its 5-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $25,300.

Required:

Question: If the relevant tax rate is 32 percent, what is the aftertax cash flow from the sale of this asset?

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166114

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