Question
Jake is considering purchasing an investment costing $78,000 that will save power costs of $35,000 a year for each of 6 years. The investment will
Jake is considering purchasing an investment costing $78,000 that will save power costs of $35,000 a year for each of 6 years. The investment will be depreciated on a straight-line basis with $0 salvage over 6 years. The tax rate is 40%. What are the cash flows after taxes each year?
- A. $5,200
- B. $14,000
- C. $19,200
- D. $21,000
- E. $26,200
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The Handbook Of Municipal Bonds
Authors: Frank J. Fabozzi, Sylvan G. Feldstein
1st Edition
0470108754, 9780470108758
