Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life.
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Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is 40 percent, what is the after tax cash flow from the sale of this asset?
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-0077861704
11th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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