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Kempf Corporation faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year
Kempf Corporation faces a marginal tax rate of 35 percent. One project that is currently under evaluation has a cash flow in the fourth year of its life that has a present value of $10,000 (after-tax). Kempf Corporation assumes that all cash flows occur at the end of the year and the company uses 11 percent as its discount rate. What is the pre-tax amount of the cash flow in year 4? (Round to the nearest dollar.) please show work.
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