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Billy Bob's Monster Trucks is considering the purchase of some new vehicles. The total cost for the vehicles is $ 3 0 8 , 0
Billy Bob's Monster Trucks is considering the purchase of some new vehicles. The total cost for the vehicles is $ and they are to be depreciated straightline to zero over years. The vehicles will be used for years, after which they can be sold for $
If the relevant tax rate is percent, what is the aftertax cash flow from the sale of this asset? Do not round your intermediate calculations.
NOTE: Taxes are affected when the asset is sold at either a gain or loss over book value.
Multiple Choice
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