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Sisa Company is evaluating a plan to expand its store space due to the expected increase in volume of activities in the next few months.
Sisa Company is evaluating a plan to expand its store space due to the expected increase in volume of activities in the next few months. The expansion would cost 200,000 and would have a useful life of 20 years, with no salvage value. The expected increase in sales revenue is 55,000 a year and cash expenses are 20,000 a year. The income tax rate is 35% a. What is the net cost of the investment? b. What is the net cash inflow? C. What is the accounting net income?
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