Suppose You Sell a Fixed Asset for $99,000 When Its

question 7

Multiple Choice

Suppose you sell a fixed asset for $99,000 when its book value is $129,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale) ?

• A) $80,700
• B) $110,700
• C) $77,300
• D) $84,800