Carter Incorporated and CCC Incorporated are owned by the same family. Carter's marginal tax rate is 21%, and CCC's marginal tax rate is 10%. Carter has the opportunity to engage in a transaction that will generate $500,000 taxable cash flow. Alternatively, CCC could engage in the transaction. However, CCC would incur an extra $42,500 deductible cash expense with respect to the transaction. Which of the following statements is true?

The answer is: CCC should engage in the transaction to generate $16,750 more after-tax cash flow.

Could you please tell me how they found the $16,750 after-tax cash flow? I cannot seem to find it.

Thank you!