Consider an asset that costs $740,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $219,000.Consider an asset that costs $740,000 and is depreciated straight-line to zero over its 10-year tax life. The asset is to be used in a 7-year project; at the end of the project, the asset can be sold for $219,000.

A) What is the book value of the equipment at the end of the 7 years?

B) If the relevant tax rate is 24 percent, what is the aftertax cash flow from the sale of this asset?