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Calculating Salvage Value Consider an asset that costs $320,000 and is de- preciated straight-line to zero over its eight-year tax life. The asset is to
Calculating Salvage Value Consider an asset that costs $320,000 and is de- preciated straight-line to zero over its 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 $70,000. If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?
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