A company anticipates a taxable cash expense of $80,000 in year 2 of a project. The company's tax rate is 30% and its discount rate is 10%. The present value of this future cash flow is closest to: Select one: a. $(56,000) b. $(19,835) c. $(46,281) d. $(24,000)
A company anticipates a taxable cash expense of $80,000 in year 2 of a project. The company's tax rate is 30% and its discount rate is 10%. The present value of this future cash flow is closest to: Select one: a. $(56,000) b. $(19,835) c. $(46,281) d. $(24,000)
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 16EA: Project B cost $5,000 and will generate after-tax net cash inflows of $500 in year one, $1,200 in...
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A company anticipates a taxable cash expense of $80,000 in year 2 of a project. The company's tax rate is 30% and its discount rate is 10%. The present value of this future cash flow is closest to:
Select one:
a.
$(56,000)
b.
$(19,835)
c.
$(46,281)
d.
$(24,000)
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