Consider an asset that costs $640,000 and is depreciated straight-line to zero over its 8-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 $111,000.

What is the book value of the equipment at the end of the 5 years?

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