Consider an asset that costs ($248,000) and is depreciated straight-line to zero over its eight-year tax life.

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Consider an asset that costs \($248,000\) 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 \($55,000.\) If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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