Consider an asset that costs $316,800 and is depreciated straight-line to zero over its 13-year tax life. The asset is to be used in a 5-year project; at the end of the project, the asset can be sold for $39,600.
Required :
If the relevant tax rate is 33 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.)
a) $889,032.00
b) $95,410.11
c) $90,866.77
d) $86,323.43
e) $26,532.00