Amukthamalyada, Inc., a particle physics producing company has its Earnings before taxes (EBT) of $500,000.The company has depreciation of $100,000.If the company is in the 40% tax bracket, what would be its net cash flows for the current year?

a) $340,000

b) $500,000

c) $400,000

d) $275,000

Net Cash Flow for the current year

Net Cash Flow for the current year = Net Income after Tax + Depreciation Expense

= EBT(1 - Tax Rate) + Depreciation Expense

= $500,000(1 - 0.40) + $100,000

= [$500,000 x 0.60] + $100,000

= $300,000 + $100,000

= $400,000 Per my calculations I'm thinking C Reassurance will be appreciated!