Question

Consider an asset that costs $202,400 and is depreciated straight-line to zero over its 9-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 $25,300.

  

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.)

rev: 09_18_2012

$16,951.00

$234,037.00

$41,175.75

$37,254.25

$39,215.0

Answer 1