Question
A company needs an increase in working capital of $20,000 in a project that will last 4 years. The company's tax rate is 30% and
A company needs an increase in working capital of $20,000 in a project that will last 4 years. The company's tax rate is 30% and its after-tax discount rate is 10%. How much is the present value of the release of the working capital at the end of the project closest to?
A.$6,000B.$9,562C.$14,000D.$13,660
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
8th edition
ISBN: 978-1-119-3904, 1119392422, 111939242X, 1119390451, 978-1119392422
