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Exercise 19.17 Computation of After-Tax Cash Flows Postman Company is considering two independent projects. One project involves a new product line, and the other involves
Exercise 19.17 Computation of After-Tax Cash Flows Postman Company is considering two independent projects. One project involves a new product line, and the other involves the acquisition of forklifts for the Materials Handling Department. The projected annual operating revenues and expenses are as follows: Project I (investment in a new product) 270,000 (135,000) (45,000) $ 90,000 (36,000) S 54,000 Revenues Cash expenses Depreciation Income before income taxes Income taxes Net income Project II (Acquisition of Two Forklifts) ash expenses Depreciation $90,000 90,000 equired: ompute the after-tax cash flows of each project. The tax rate is 40 percent and includes federal nd state assessments. Enter cash outflows as negative amounts and cash inflows as positive mounts
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