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15. COTB MC Qu. 14-98 (Algo) Assume that a company has provided... Assume that a company has provided the following Information regarding a capital Investment
15.
COTB MC Qu. 14-98 (Algo) Assume that a company has provided... Assume that a company has provided the following Information regarding a capital Investment opportunity: Initial investment in equipment Initial investment in working capital Estimated annual sales Estimated annual cash operating expenses Repairs and maintenance in 3 years $ 150,000 $ 30,000 $ 160,000 $ 80,000 $ 20,000 The equipment has a four-year useful life and no salvage value. The working capital will be released at the end of the project. The company's tax rate is 30%. The Income tax expense for Year 4 this Investment is closest to: Multiple Choice $30,000 O $12.750. $14,000. O O $15,750Step by Step Solution
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