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What Is the After-Tax Cash Flow That Results from the Sale

Question 161

Multiple Choice

What is the after-tax cash flow that results from the sale for $150,000 of a capital asset that has a book value of $200,000, given a 40% tax rate?

A) $150,000
B) $130,000
C) $90,000
D) $170,000
E) $120,000

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