Consider an asset that costs $360,800 and is depreciated straight-line to zero over its 6-year tax life.
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Question:
Consider an asset that costs $360,800 and is depreciated straight-line to zero over its 6-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 $45,100.
If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset?
- $96,604.20
- $87,403.80
- $402,304.00
- $34,276.00
- $92,004.00
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