Consider an asset that costs $715.000 and is depreciated straight-line to zero over its seven-year tax life.
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Question:
Consider an asset that costs $715.000 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 $157,000. If the relevant tax rate Is 21 percent, what is the aftertax cash flow from the sale of this asset? (Do not round Intermediate calculetions.)
Aftertax salvage value
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