Problem 9-6 Calculating Salvage Value [LO 2]

Consider an asset that costs $681,100 and is depreciated straight-line to zero over its seven-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $136,100. (Do not round intermediate calculations.)

Required:

If the relevant tax rate is 40 percent, what is the aftertax cash flow from the sale of this asset?

Aftertax salvage value

$