A corporation is considering purchase a new plant asset. The asset will cost $120,000. They estimate additional cash inflows of $200,000 and additional cash outflows of $110,000 in the first year. Assume they will take bonus depreciation in the first year and have a tax rate of 20%. They require a 10% return on similar investments. Calculate the discounted Year 1 cash flow. You must include the calculation in order to receive credit.

A corporation is considering purchase a new plant asset. The asset will cost $120.000. They estimate additional cash inflows of $200.000 and additional cash outflows of $110.000 in the first year. Assume they will take bonus depreciation in the first year and have a tax rate of 20%. They require a 10% return on similar investments. Calculate the discounted Year 1 cash flow. You must include the calculation in order to receive credit