Question
Consider an asset that costs $404,800 and is depreciated straight-line to zero over its 6-year tax life. The asset is to be used in a
| Consider an asset that costs $404,800 and is depreciated straight-line to zero over its 6-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $50,600. |
| If the relevant tax rate is 21 percent, what is the aftertax cash flow from the sale of this asset? |
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
7th Edition
0357442040, 978-0357442043
