Consider a Project with an Initial Asset Cost of $168,000

Multiple Choice

Consider a project with an initial asset cost of $168,000 with depreciation of that asset set as straight-line to zero over seven years. Ignore bonus depreciation. At the end of the project's four-year life the asset can be sold for $65,000. Use a combined federal and state tax rate of 24 percent. What is the aftertax salvage value?

A) $62,550
B) $65,500
C) $66,050
D) $68,100
E) $66,680