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Suppose you sell a fixed asset for $78,000 when it's book value is $86,000. If your company's marginal tax rate is 28%, what will be
Suppose you sell a fixed asset for $78,000 when it's book value is $86,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
a) $8,000
b) $56,160
c) $80,240
d) $86,000
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