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Clay Corporation invested $600,000 in a capital project, including $40,000 in installation charges. The project had a useful life of 12 years with no salvage
Clay Corporation invested $600,000 in a capital project, including $40,000 in installation charges. The project had a useful life of 12 years with no salvage value and generated cash flows of $150,000 each year. Assuming a 30\% tax rate and straight-line depreciation for tax purposes, Clay's after-tax cash flows per year would have been equal to: $150,000 $105,000 $140,000 $120,000
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