Manjarrez Corporation Has Provided the Following Information Concerning a Capital

question 92

Multiple Choice

Manjarrez Corporation has provided the following information concerning a capital budgeting project: The company's income tax rate is 30% and its after-tax discount rate is 6%. The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting.
The income tax expense in year 2 is:

• A) $18,000
• B) $168,000
• C) $21,000
• D) $129,000

---

Definitions:

Conditional Formatting

A feature in data visualization and spreadsheet software that changes the appearance of cells based on certain conditions, making it easier to visually assess data.

Date Formats

Conventions for representing dates in writing, which vary widely around the world, typically including day, month, and year in various orders.

Percentage Style

A format option in spreadsheet and other applications that displays numbers as percentages, usually multiplying the cell value by 100 and adding a percent sign.

Decimal Places

The number of digits to the right of the decimal point in a decimal number, indicating the precision of the value.