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You are conducting a DCF, You purchased an asset for 400k at time zero. The asset depreciates using straight line over 10 years. When you
You are conducting a DCF, You purchased an asset for 400k at time zero. The asset depreciates using straight line over 10 years. When you intially placed the asset into service, you expect a salvage value of 0. At the end of the year 7, the project is cancelled and sold for 145k. Before this transaction, the firm was forecasted to earn 1 million in profit after tax, and the tax rate is 20%.
What is the cash flow, in year 7 from this transaction?
A. Inflow of 51k
B. Inflow of 155k
C. Inflow of 150k
D. Inflow of 147k
E. None
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