Q1

Q2

Consider an asset that costs $431,200 and is depreciated straight-line to zero over its 13-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $53,900. Required: If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) $975,602.00 $37,730.00 $107,385.38 $102,016.11 $112,754.65 An asset used in a 4-year project falls in the 5-year MACRS class (MACRS Table) for tax purposes. The asset has an acquisition cost of $10,980,000 and will be sold for $2,440,000 at the end of the project. Required: If the tax rate is 33 percent, what is the aftertax salvage value of the asset? $2.260,924 $1,634,800 $2.619,076 $2.373,970 $2,147,877 Year 2. Property Class Three-Year Five-Year 33.33% 20.00% 44.45 32.00 14.81 19.20 7.41 11.52 11.52 5.76 3 4. 5 6 Seven-Year 14.29% 24.49 17.49 12.49 8.93 8.92 8.93 4,46 7 8