Consider an asset that costs $666,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $169,000. If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.) Aftertax salvage value eBook & Resources eBook: 10.4. More about Project Cash Flow Check my work
Consider an asset that costs $666,000 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $169,000. If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round intermediate calculations.) Aftertax salvage value eBook & Resources eBook: 10.4. More about Project Cash Flow Check my work
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![Consider an asset that costs $666,000 and is depreciated straight-line to zero over its nine-year tax life. The
asset is to be used in a five-year project; at the end of the project, the asset can be sold for $169,000. If the
relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round
intermediate calculations.)
Aftertax salvage value
2$
eBook & Resources
eBook: 10.4. More about Project Cash FloW
Check my work](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c26cae1-b6eb-4dd9-a85b-f601174ec3e9%2F93de43ff-5650-4b02-ad66-b4c0e2a6b3a6%2F5fxjbu7_processed.png&w=3840&q=75)
Transcribed Image Text:Consider an asset that costs $666,000 and is depreciated straight-line to zero over its nine-year tax life. The
asset is to be used in a five-year project; at the end of the project, the asset can be sold for $169,000. If the
relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset? (Do not round
intermediate calculations.)
Aftertax salvage value
2$
eBook & Resources
eBook: 10.4. More about Project Cash FloW
Check my work
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