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Consider an asset that costs $352,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a
Consider an asset that costs $352,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $44,000.
If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset?
A. $58,168.00
B. $61,076.40
C. $297,012.00
D. $33,880.00
E. $55,259.60
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