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    Total after-tax present value of the cash flows

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    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

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    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

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