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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 $308,000 and they are to be depreciated straight-line to zero over 6 years. The vehicles will be used for 3 years, after which they can be sold for $38,500.
If the relevant tax rate is 32 percent, what is the after-tax 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
$75,460
$26,180
$346,512
$71,687
$79,233
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