Annual depreciation

Accumulated depreciation

Book value

Aftertax cash flow

Consider an asset that costs $730,000.00 and is deprecated straight-line to zero over it's 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 $192,000.00. If the relevant tax rate is 40 percent, what is the aftertax cash flow from the sale of this asset.

Costs

Pretax salvage value

Tax rate

*Depreciation straight line

*Asset used in years