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Consider a profitable company with an asset that costs $10,000,000 that is depreciated straight-line to zero over its 9 year depreciable tax life. The asset
Consider a profitable company with an asset that costs $10,000,000 that is depreciated straight-line to zero over its 9 year depreciable tax life. The asset is to be used in a 3 yearproject; at the end of the project, the asset can be sold for $364,000. If the relevant tax rate is 19%, what is the after tax cash flow from the sale of this asset (after-tax salvage)? a. 1515838 b. 1521655
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