The third year of an equipment selection investment


Ring Corporation uses a discount rate of 12% and has a tax rate of 30%. The following cash flows occur in the third year of an equipment selection investment project: Net operating cash inflows of $90,000 and Depreciation deduction of $72,000. The total after-tax present value of the cash flows is closest to A. $10,152 B. $34,603 C. $60,235 D. $79,459

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Accounting Basics: The third year of an equipment selection investment
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