(Answered) Suppose you sell a fixed asset for 90000 when its book

Finance

Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 40%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?

i) $95,000
ii) $92,000
iii) $3,000
iv) $5,000

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