Consider an asset that costs $465,000 and is depreciated straight-line to zero over its six-year tax life.The asset is to be used in a four-year project; at the end of the project,the asset can be sold for $120,000.If the relevant tax rate is 35 percent,what is the aftertax cash flow from the sale of this asset?
A) $132,250
B) $155,000
C) $116,500
D) $97,600
E) $79,200
Correct Answer:
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