Question
A company needs an increase in working capital of $20,000 in a project that will last four years. The company's tax rate is 30 percent
A company needs an increase in working capital of $20,000 in a project that will last four years. The company's tax rate is 30 percent and its after-tax discount rate is 10 percent. The present value of the release of the working capital at the end of the project is closest to
A.$6,000.
B.$14,000.
C.$13,660.
D.$9,562.
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Accounting for Governmental and Nonprofit Entities
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
18th edition
1260190080, 1260190083, 978-1259917059
