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A project requires to buy an asset with initial cost P=$12,000. 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=$12,000. Assume a 21% tax rate on the taxable income. What is the correct value for [A] in the Table Year Pre Tax Cash Flow Book Value 3yr MACRS Taxable Income Tax (21%) After Tax Cash Flow 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. $12,000 OB. $5,000 OC. $7,000 OD. $8,000
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