Consider an asset that costs $246,400 and is depreciated straight-line to zero over its 8-year tax life. The asset is to be used in a 3-year project; at the end of the project, the asset can be sold for $30,800. Required : If the relevant tax rate is 34 percent, what is the aftertax cash flow from the sale of this asset?
$72,688.00
$76,322.40
$460,164.00
$69,053.60
$20,328.00