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Assume an Asset Costs $38,700 and Has a Current Book

Question 18

Multiple Choice

Assume an asset costs $38,700 and has a current book value of $18,209.The asset is sold today for $15,000 cash.The tax rate is 34 percent.As a result of this sale,the company's net cash flow will


A) increase by exactly $15,000.
B) decrease by the difference between the $18,209 and the $15,000.
C) increase by more than $15.000.
D) increase by less than $15,000.
E) decrease by some amount.

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