Question
Consider an asset that costs $396,000 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a
| Consider an asset that costs $396,000 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $49,500. |
| If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? |
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Venture Capital And The Finance Of Innovation
Authors: Andrew Metrick, Ayako Yasuda
3rd Edition
1119490111, 978-1119490111
