Question
Consider an asset that costs $810,000 and is depreciated straight line to zero over its nine year tax life. The asset is to be used
Consider an asset that costs $810,000 and is depreciated straight line to zero over its nine 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 $185,000. If the relevant tax rate is 30 percent, what is the after tax cash flow
from the sale of this asset?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter
8th Canadian Edition
007133887X, 978-0071338875
