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Sunrise Company has a tax rate of 40% and a required rate of return of 12%. The company has new equipment that saves $100,000 per
Sunrise Company has a tax rate of 40% and a required rate of return of 12%. The company has new equipment that saves $100,000 per year in labor costs. What is the annual after-tax cash flow from the labor cost savings? A) $60,000 cash outflow B) $60,000 cash inflow C) $40,000 cash inflow D) $40,000 cash outflow
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