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Suppose you sell a fixed asset for $115,000 when it's book value is $135,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

$12,200 $20,000 $135,000 $122,800

Financial Management, Finance

  • Category:- Financial Management
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