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Jackson Company has a current net income of $680,000 and 100,000 shares of common stock have been issued. The company is considering a project that
Jackson Company has a current net income of $680,000 and 100,000 shares of common stock have been issued. The company is considering a project that requires $300,000 and would borrow these funds at 12%. Management believes that the funds raised can be used to increase income before interest and taxes by $240,000 each year. The current tax rate is 40%. What would be the amount of total projected net income if the new project is added to the current projects? A. $884,000 B. $824,000 C. $788,000 OD. $802,400
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