Aftertax cash flow from the sale

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Reference no: EM13123372

Consider an asset that costs $484,000 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $60,500.

Required :

If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)

Multiple Choice:

a) $903,882.00

b) $39,930.00

c) $149,919.00

d) $142,780.00

e) $135,641.00

Reference no: EM13123372

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