Question
Consider an asset that costs $264,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a
Consider an asset that costs $264,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $33,000.
If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?
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Public Finance
Authors: Richard W. Tresch
2nd Edition
0126990514, 978-0126990515
