Question
Billy's Plumbing Supplies is considering the purchase of an asset that costs $235,482 and is depreciated straight-line to zero over its 6 year tax life.
Billy's Plumbing Supplies is considering the purchase of an asset that costs $235,482 and is depreciated straight-line to zero over its 6 year tax life.
The asset is to be used in a 5 project; at the end of the project, the asset can be sold for $31,897.
If the relevant tax rate is 30%, what is the after-taxcash flow from the saleof this asset?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
