Problemsuppose you sell a fixed asset for 119000 when its, Ask an Expert

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Problem:

Suppose you sell a fixed asset for $119,000 when its book value is $143,000.

Required:

Question: If your company's marginal tax rate is 15%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

• $122,600

• $24,000

• $20,400

• $143,000

Note: Please show the work not just the answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174723

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