Compute the aftertax proceeds from the sale of the asset

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Reference no: EM131338337

Two years ago, Agro, Inc., purchased an ACE generator that cost $250,000. Agro had to pay an additional $50,000 for delivery and installation, and the investment in the generator required the firm to increase its net working capital position by $25,000.

The generator, which is being depreciated over a period of five years using straight-line depreciation, has a current market value of $79,550. The firm's marginal tax rate is 40 percent.

If the firm liquidates the asset for its current market value, compute the aftertax proceeds from the sale of the asset.

Reference no: EM131338337

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