Total after-tax present value of the cash flows
Not what you're looking for?
Question 4: (1 point)
Wedge Corporation uses a discount rate of 14% and has a tax rate of 30%. The following cash flows occur in the last year of a 15-year equipment selection investment project:
Cost savings for the year $183,000
Working capital released $123,000
Salvage value from sale of equipment $30,000
At the end of the fifteen years when the equipment is sold, its net book value for tax purposes is zero. The total after-tax present value of the cash flows above is closest to:
$38,094
$39,434
$32,410
$43,559
Purchase this Solution
Solution Summary
This provides the steps to calculate the total after-tax present value of the cash flows.
Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Understanding Management
This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.
Lean your Process
This quiz will help you understand the basic concepts of Lean.