Consider an asset that costs $501,600 and is depreciated straight-line to zero over its 12-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $62,700.

If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset?

Multiple Choice

• $47,025.00

• $104,238.75

• $94,311.25

• $99,275.00

• $705,387.00