Consider an asset that costs $725,000 and is depreciated straight-line to zero over its 10-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 $213,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Aftertax salvage value
Consider an asset that costs $725,000 and is depreciated straight-line to zero over its 10-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 $213,000. If the relevant tax rate is 23 percent, what is the aftertax cash flow from the sale of this asset? Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32. Aftertax salvage value
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 18E
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Aa.4
![Consider an asset that costs $725,000 and is depreciated straight-line to zero over its 10-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 $213,000. If the relevant tax rate is 23
percent, what is the aftertax cash flow from the sale of this asset?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Aftertax salvage value](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcf254572-89bf-488c-b73f-c41b316f70e2%2F1a2b858d-9438-4637-aaca-b7bbcef105a4%2F3y9ral4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider an asset that costs $725,000 and is depreciated straight-line to zero over its 10-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 $213,000. If the relevant tax rate is 23
percent, what is the aftertax cash flow from the sale of this asset?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
Aftertax salvage value
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