Problem:
Consider an asset that costs $678,300 and is depreciated straight-line to zero over its seven-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 $136,500. (Do not round intermediate calculations.)
Requirement:
Question: If the relevant tax rate is 35 percent, what is the after-tax cash flow from the sale of this asset?
Note: Please provide step by step solution.