Consider an asset that costs $$745,000$ and is depreciated straight$-$line to zero over its eight$-$year tax life. The asset is to be used in a five$-$year project; at the end of the project, the asset can be sold for $$135,000.$ If the relevant tax rate is $21$ percent, what is the aftertax cash flow from the sale of this asset?

Input area:

Costs $$745,000$

Depreciable life $8$

Asset used in years $5$

Pretax salvage value $$135,000$

Tax rate $21\%$

$($Use cells A$6$ to B$10$ from the given information to complete this question. Taxes on the salvage value should be negative for a tax liability and positive for a tax credit.$)$

Output area:

Annual depreciation $$

Accumulated depreciation $$

Book value $$

Aftertax cash flow

Pretax salvage value

Taxes

Aftertax salvage value