Give true answer don't use chatgpt What is the after-tax cash flow that resultsfrom the sale of a capital asset for$150,000? Assume that it has a book valueof $100,000 and a 40% tax rate.A. $150,000B. $90,000C. $130,000D. $60,000E. $170,000

Step 1: Define Capital AssetFirms purchase capital assets to run their business operation and…

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Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...

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Suppose you sell a fixed asset for $125,000 when it's book value is $139,000. If your company's marginal tax rate is 30%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax free cash flow of this sale)? a. $9,800 b. $14,000 c. $111,300 d. $129,200
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Suppose you sell a fixed asset...accounting questions
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What is the after-tax cash flow that results from the sale of a capital asset for $150,000? Assume that it has a book value of $100,000 and a 40% tax rate. A. $150,000 B. $90,000 C. $130,000 D. $60,000 E. $170,000