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Coache Corporation is considering a capital budgeting project that would require an investment of $190,000 in equipment with a 4 year useful life and zero
Coache Corporation is considering a capital budgeting project that would require an investment of $190,000 in equipment with a 4 year useful life and zero salvage value. The annual incremental sales would be $690,000 and the annual incremental cash operating expenses would be $500,000. In addition, there would be a one-time renovation expense in year 3 of $26,000. The company's income tax rate is 30%. The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 3 is: Multiple Choice $129,050 $164,000 O $83,400 $109,400
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