QUESTION

103. Consider an asset that costs $459,000 and is depreciated straight-line to zero over its 6-year tax life. The asset

Category: Business
Subject: Finance
Due Date: 02/03/2016
Question Asked: 2016-02-03 03:24:50

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103. Consider an asset that costs $459,000 and is depreciated straight-line to zero over its 6-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 $120,000. If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset? 
A. $131,220
B. $127,840
C. $116,500
D. $97,600
E. $79,200


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103. Consider an asset that costs $459,000 and is depreciated straight-line to zero over its 6-year tax life. The asset

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Posted on 2016-02-03 03:24:50

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