Consider an asset that costs $308,000 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $38,500.

Required : If the relevant tax rate is 33 percent, what is the after-tax cash flow from the sale of this asset? (Do not round your intermediate calculations.

1) $98,395.00 2) $559,417.00 3) $93,475.25 4) $25,795.00 5) $103,314.75