Karen Corp has an asset they would like to sell. The asset has an original cost of $170,000 and accumulated depreciation of $109,000. The asset would be sold for $50,000 cash. Karen’s tax rate is 40%. Calculate the    after-tax cash inflow from the sale of this asset.     a. $45,600 b. $54,400 c. $39,000 d. $43,400 e. $50,000     f. $30,000 g. $65,400 h. None of the above

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ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
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Karen Corp has an asset they would like to sell. The asset has an original cost of $170,000 and accumulated depreciation of $109,000. The asset would be sold for $50,000 cash. Karen’s tax rate is 40%. Calculate the    after-tax cash inflow from the sale of this asset.  

 
a. $45,600
b. $54,400
c. $39,000
d. $43,400
e. $50,000    
f. $30,000
g. $65,400
h. None of the above

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