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Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 7 -year tax life. The asset is to be used in
Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 7 -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 $60,500. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset? Multiple Choice $680,637.00 $138,393.75 $45,375.00 $131,803.57 $125,213.39
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