Assume an asset cost $41,500 and has a current book value of $23,200.The asset is sold today for $19,900 cash.The firm's tax rate is 34 percent.As a result of this sale,the firm's net cash flow:
A) will increase by exactly $19,900.
B) will decrease by the difference between the $23,200 and the $19,900.
C) will increase by more than $19,900.
D) will increase by less than $19,900.
E) will decrease by some amount.
Correct Answer:
Verified
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