Question
1. BC Travel Services is considering a new 10-year project that will generate additional sales revenue of $200,000 per year. The associated costs are $120,000
1.BC Travel Services is considering a new 10-year project that will generate additional sales revenue of $200,000 per year. The associated costs are $120,000 per year. The required rate of return for the project is 12%.The tax rate is 40%.What is the present value of the after-tax operating cash flows?
A.$250,374
B.$271,211
C.$417,289
D.$452,018
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
