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A project requires to buy an asset with initial cost P=S12,000. Assume a 21% tax rate on the taxable income. What is the correct value
A project requires to buy an asset with initial cost P=S12,000. Assume a 21% tax rate on the taxable income. What is the correct value for E? Book Year Pre Tax Cash Flow 3yr MACRS Taxable Income Tax (21%) After Tax Cash Flow Value 0 -12.000 XXX XXX XXX XXX -12.000 1 5.000 [A] 4.000 [C] 210 4.790 2 6,000 8,000 [B] 666 140 5,860 3 2.000 2.666 1.777 223 [D] 1.953 4 4.000 889 889 3.111 653 [E] O A $3,347 OB. $889 OC.$3,111 OD. $2,458
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