
CFIN
5th Edition
ISBN: 9781305661639
Author: Scott Besley, Eugene Brigham
Publisher: Cengage Learning
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Chapter 10, Problem 9PROB
Summary Introduction
Profit or loss is the difference of the sale value of asset and book value when the asset is sold.
Calculate the profit or loss as follows:
After tax cash flows are the cash flows remaining after payment of tax.
Calculate the after tax cash flows as follows:
TEC is selling its assets with book value of $90,000 for $102,000. Tax rate is 40%.
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