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East Ridge Company is considering a capital project that delivers a $58,500 annual net cash inflow before tax. The investment will result in annual depreciation

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East Ridge Company is considering a capital project that delivers a $58,500 annual net cash inflow before tax. The investment will result in annual depreciation expense of $13,400 over the project's four year useful life. Assuming a tax rate of 40%, what amount of annual after-tax net cash flow will be provided by this project? Multiple Choice $40.460 58.040 545100 527060 Truskowski Corporation has provided the following information concering a capital budgeting project After-tax discount rate Tax rate Expected lite of the project Tovestment required in equipment Salvage value of equipment Annual sales Annual cash operating expenses 100 JON 4 $196,000 $ 0 $395,000 $ 150,000 The company uses straight line depreciation on all equipment, the annual depreciation expense will be $49,000. Assume cash flows occur at the end of the year except for the initial Investments. The company takes income tau into account in As capital budgeting, The net present value of the project is closest to Multiple choke 3548 S171020 The company uses straight-line depreciation on all equipment, the annual depreciation expense will be $49,000. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net present value of the project is closest to Multiple Choice $548,800 $177,020 $590,068 $394,068

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