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Fontana Corporation is considering a capital budgeting pro ect that would require investing S240 0?in equipment with an expected life of 4 years and zero

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Fontana Corporation is considering a capital budgeting pro ect that would require investing S240 0?in equipment with an expected life of 4 years and zero salvage value. The annual incremental sales would be $640,000 and the annual incremental cash operating expenses would be $440,000. 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 2 is Multiple Choice $158,000 $200,000 $88,000 $140,000

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