What is the aftertax cash flow from sale of asset

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Reference no: EM132030415

1. Consider an asset that costs $512000 and is depreciated straight-line to zero over its 11-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $113000. If the relevant tax rate is 0.32, what is the aftertax cash flow from the sale of this asset (SVNOT)?

2. Consider an asset that costs $838000 and is depreciated straight-line to 25000 over its 8-year tax life. The asset is to be used in a 6-year project; at the end of the project, the asset can be sold for $157000. If the relevant tax rate is 0.30, what is the aftertax cash flow from the sale of this asset (SVNOT)?

Reference no: EM132030415

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