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a Torben Corporation has provided the following information concerning a capital 20 Investment required in equipment $ 320,000 4 Expected life of the project Salvage
a Torben Corporation has provided the following information concerning a capital 20 Investment required in equipment $ 320,000 4 Expected life of the project Salvage value of equipment $ 0 Annual sales $ 680,000 Annual cash operating expenses (including $ 480,000 both variable and fixed expenses) The company's income tax rate is 30% and its discount rate is 11%. The company Assume cash flows occur at the end of the year except for the initial investment capital budgeting The total after-tax cash flow in year 2 is: Multiple Choice $86,500
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