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Last year the sales at Summit Corporation were $403,000 and were all cash sales. The expenses at Summit were $251,500 and were all cash expenses

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Last year the sales at Summit Corporation were $403,000 and were all cash sales. The expenses at Summit were $251,500 and were all cash expenses The tax rate was 30%. The after-tax net cash Inflow at Summit last year was Multiple Choice O $151.500 $45.450 $106.050 O $403,000 Coache Corporation is considering a capital budgeting project that would require an Investment of $280,000 in equipment with a 4 year useful life and zero salvage value. The annual incremental sales would be $720,000 and the annual Incremental cash operating expenses would be $400,000. In addition, there would be a one-time renovation expense in year 3 of $35,000. 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 3 is: Multiple Choice $220,500 ooo $285,000 $134750 Multiple Choice o $220,500 o $285,000 o $134,750 o $169,750

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