Consider an asset that costs $422,400 and is depreciated straight-line to zero over its 7-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 $52,800.

If the relevant tax rate is 21 percent, what is the aftertax cash flow from the sale of this asset?

Multiple Choice

• $87,780.00

• $418,716.00

• $41,712.00

• $97,020.00

• $92,400.00