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Radtke Corporation faces a marginal tax rate of 30 percent. One project that is currently under evaluation has a cash flow in the fifth year
Radtke Corporation faces a marginal tax rate of 30 percent. One project that is currently under evaluation has a cash flow in the fifth year of its life that has a present value of $12,000 (after-tax). Radtke Corporation assumes that all cash flows occur at the end of the year and the company uses 13 percent as its discount rate. What is the pre-tax amount of the cash flow in year 5 ? (Round to the nearest dollar.) Present value tables or a financial calculator are required. Select one: a. $31,582 b. $22,108 c. $15,475 d. $73,692
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