Question
The firm is in its final year of a project. The equipment can be sold today for the price indicated below. What is the after
The firm is in its final year of a project. The equipment can be sold today for the price indicated below. What is the after tax cashflow from the sale of the asset?
| Original cost of equipment | $11 million |
| Percent of original cost that has been depreciated | 70% |
| Price at which equipment can be sold today | $ 6 million |
| Tax rate | 20% |
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Capital Market Finance
Authors: Patrice Poncet, Roland Portait, Igor Toder
1st Edition
3030845982, 978-3030845988
