Problemconsider an asset that costs 228800 and is, Ask an Expert

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Problem:

Consider an asset that costs $228,800 and is depreciated straight-line to zero over its 14-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 $28,600.

Required:

Question: If the relevant tax rate is 31 percent, what is the aftertax cash flow from the sale of this asset?

Note: Show all workings.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162500

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