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Consider an asset that costs $685,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a
Consider an asset that costs $685,000 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $145,000. If the relevant tax rate is 25 percent, what is the aftertax cash flow from the sale of this asset?
Aftertax salvage value:
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