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Actuality Company is considering an investment in equipment costing $36,000 with a six-year life and no salvage value. Actuality uses straight-line depreciation and is subject
Actuality Company is considering an investment in equipment costing $36,000 with a six-year life and no salvage value. Actuality uses straight-line depreciation and is subject to a 35 percent tax rate. The expected net cash inflow before depreciation and taxes is projected to be $24,000 per year. The Year 1 annual after-tax net cash inflow is:
Select one:
a. $21,600
b. $15,600
c. $17,700
d. $19,500
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