Consider an Asset That Costs $176,000 and Is Depreciated Straight-Line

Multiple Choice

Consider an asset that costs $176,000 and is depreciated straight-line to zero over its 11-year tax life.The asset is to be used in a 7-year project; at the end of the project,the asset can be sold for $22,000.The relevant tax rate is 30 percent.What is the aftertax cash flow from the sale of this asset?

A) $31,800
B) $32,600
C) $33,300
D) $34,100
E) $34,600