Consider an asset that costs $334,400 and is depreciated straight-line to zero over its 10-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 $41,800.

Required :

If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset? Hint: If sold at a loss, taxes will be negative, so ATSV = selling price - taxes on gain, would result in subtracting negative taxes.(Do not round your intermediate calculations.)

$73,986.00

$27,170.00

$70,286.70

$524,602.00

$77,685.30