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What is the after tax cash flow from the sale of the asset

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Reference no: EM132920003

Problem 1: Consider an asset that costs $311 000 and is depreciated straight-line to zero over its six-year tax life. The asset is to be used in a four-year project; at the end of the project, the asset can be sold for $58 000. If the relevant tax rate is 34%, what is the after tax cash flow from the sale of this asset?

A. $73 526.67

B. $68 411.19

C. $70 103.33

D. $40 466.67

Reference no: EM132920003

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