Given an asset with a net book value (NBV) of $35,000. a. What are the after-tax proceeds for a firm in the 33% tax bracket if this asset is sold for $47,000 cash? After-tax proceeds $ 43,040 b. What are the after-tax proceeds for this same firm if the asset is sold for $21,000 cash? After-tax proceeds

Given an asset with a net book value (NBV) of $35,000. a. What are the after-tax proceeds for a firm in the 33% tax bracket if this asset is sold for $47,000 cash? After-tax proceeds $ 43,040 b. What are the after-tax proceeds for this same firm if the asset is sold for $21,000 cash? After-tax proceeds

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7A: Using Wacc To Complete The Calibration Of Eva

Section: Chapter Questions

Problem 1EP

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Question

Given an asset with a net book value (NBV) of $35,000.
a. What are the after-tax proceeds for a firm in the 33% tax bracket if this asset is sold for $47,000 cash?
After-tax proceeds $ 43,040
b. What are the after-tax proceeds for this same firm if the asset is sold for $21,000 cash?
After-tax proceeds

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