What is the aftertax cash flow from the sale of this asset

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Reference no: EM131923643

Consider an asset that costs $316,800 and is depreciated straight-line to zero over its 13-year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $39,600.

Required :

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

a) $889,032.00

b) $95,410.11

c) $90,866.77

d) $86,323.43

e) $26,532.00

Reference no: EM131923643

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