Problem:
Consider an asset that costs $873,900 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a six-year project; at the end of the project, the asset can be sold for $136,300. (Do not round intermediate calculations.)
Required:
Question: If the relevant tax rate is 30 percent, what is the aftertax cash flow from the sale of this asset?
Note: Be sure to show how you arrived at your answer.