Consider an asset that costs $176,000 and is depreciated straight-line to zero over its 13-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $22,000.

If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset?

Multiple Choice

• $39,464.62

• $37,491.39

• $16,720.00

• $322,972.00

• $41,437.85