Leto Incorporated has

$500,000

in an investment paying

8%

annual taxable interest. Each year, the corporation incurs a

$3,000

nondeductible cash expense relating to the investment. If Leto's marginal tax rate is

35%

, compute the annual after-tax cash flow.\

$37,000

\

$24,050

\ None of these choices are correct.\

$23,000

Leto Incorporated has $500,000 in an investment paying 8% annual taxable interest. Each year, the corporation incurs a $3,000 nondeductible cash expense relating to the investment. If Leto's marginal tax rate is 35%, compute the annual after-tax cash flow. $37,000 $24,050 None of these choices are correct. $23,000