Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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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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Transcribed Image Text: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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