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Sales increase by $30,000 and operating costs increase by $20,000 while depreciation decreases by $10,000. The tax rate is 30% Net Working Capital decreases by

Sales increase by $30,000 and operating costs increase by $20,000 while depreciation decreases by $10,000. The tax rate is 30% Net Working Capital decreases by $13,000 and you buy Fixed Asset of $23,000. There is a relevant before-tax externality of +$10,000.

A.

-$25,000

B.

$1,000

C.

$4,000

D.

$7,000

Sales increase by $40,000 and operating costs decrease by $10,000 while depreciation increases by $20,000. The tax rate is 30% Net Working Capital decreases by $13,000 and you buy Fixed Asset of $13,000. There is a relevant before-tax externality of +$1,000.

A.

$27,700.

B.

$15,700.

C.

$49,700.

D.

$41,700.

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