# Total after-tax present value of the cash flows

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

https://brainmass.com/business/discounted-cash-flows-model/total-after-tax-present-value-cash-flows-214128

#### Solution Summary

This provides the steps to calculate the total after-tax present value of the cash flows.

$2.19