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A company is considering investing in expanding its factory. The total cost of the expansion will be $500,000, of which $200,000 will be in depreciable
A company is considering investing in expanding its factory. The total cost of the expansion will be $500,000, of which $200,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $100,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). $75,500.00$70,000.00$45,500.00$30,000.00 A company is considering investing in expanding its factory. The total cost of the expansion will be $500,000, of which $200,000 will be in depreciable assets. The company's tax rate is 35% and the company uses the 5 year MACRS depreciation table (below). If the company expects $100,000 in incremental EBDT in year 1, calculate its cash flow for year 1 (to be used in capital budgeting analyses). $75,500.00$70,000.00$45,500.00$30,000.00
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