Consider an asset that costs $798,000 and is depreciated straight-line to zero over its 7-year tax life. The asset is used in a 5-year project and at the end of the project, the asset can be sold for $208,000. The tax rate is 21%.

a) What is the book value of the asset after 5 years?

b) What is the gain or loss on the sale?

c) What is the amount of tax to be refunded from the sale of the asset?

d) What is the amount of the after-tax cash flow from the sale?