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Problem:

Consider an asset that costs $675,500 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $136,900.

Required:

If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset?

Note: Please show the work not just the answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163286

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