Suppose you sell a fixed asset for $99,000 when its book value is $129,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale) ?
A) $80,700
B) $110,700
C) $77,300
D) $84,800
Correct Answer:
Verified
Q53: You are evaluating a product for your
Q54: Your company is considering a new project
Q55: Your company is considering the purchase of
Q57: You are evaluating a project for your
Q59: You are evaluating a project for your
Q60: Suppose you sell a fixed asset for
Q61: Your firm needs a computerized machine tool
Q62: KADS, Inc. has spent $400,000 on research
Q63: A financial analyst calculated that the after-tax
Q71: You are trying to pick the least
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents