Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company sells an asset for $10,000 at the end of a project. It originally paid $30,000 for that asset, and up to the time

A company sells an asset for $10,000 at the end of a project. It originally paid $30,000 for that asset, and up to the time the asset was sold it had taken a total of $15,000 in depreciation chagres on it (this is the amount of the accumulated depreciation). The company's tax rate is 21%. What is the proper cash flow amount to enter into a DCF model for this transaction?

Step by Step Solution

3.44 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

Heres how to calculate both 1 AfterTax Cash Flow This considers the tax implications of the sale Sal... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

More Books

Students also viewed these Accounting questions