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Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a

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Consider an asset that costs $730,000 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 $192,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? Costs $ 730,000 Pretax salvage value $ 192,000 Tax rate 23% Years for depreciation 8 Year asset is sold 5 Complete the following analysis. Do not hard code values in your calculations. Annual depreciation $ 91,250 Accumulated depreciation $ 456,250 Book value 273,750 LA SA Complete the following analysis. Do not hard code values in your calculations. Annual depreciation $ 91,250 Accumulated depreciation $ 456,250 Book value 273,750 Aftertax cash flow 192,000 Pretax salvage value $ Taxes Aftertax salvage value

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