Solution-After-tax cash flow from the sale of asset

After-tax cash flow from the sale of asset

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Reference no: EM131412815

Consider an asset that costs $308,000 and is depreciated straight-line to zero over its 7-year tax life. The asset is to be used in a 2-year project; at the end of the project, the asset can be sold for $38,500.

Required :

If the relevant tax rate is 33 percent, what is the after-tax cash flow from the sale of this asset? (Do not round your intermediate calculations.

1) $98,395.00

2) $559,417.00

3) $93,475.25

4) $25,795.00

5) $103,314.75

Reference no: EM131412815

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After-tax cash flow from the sale of asset

Reference no: EM131412815

Reference no: EM131412815

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