Suppose you sell a fixed asset for $92,748 when its book value is $39,249. If your...

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Suppose you sell a fixed asset for $92,748 when its book value is $39,249. If your...

Suppose you sell a fixed asset for $92,748 when its book value is $39,249. If your company's marginal tax rate is 25 percent, what will be the after-tax cash flow of this sale? DO NOT USE DOLLAR SIGNS OR COMMAS IN YOUR ANSWER. ROUND ANSWER TO THE NEAREST DOLLAR (example: 18630).

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Answer 1

Answer #1

after-tax cash flow = selling price*(1-tax rate)+book value*tax rate = 92748*(1-0.25)+39249*0.25

=

79373

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Answer 2

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