Western Electronics (WE) Is Reviewing the Following Data Relating to a New

question 109

Multiple Choice

Western Electronics (WE) is reviewing the following data relating to a new equipment proposal: WE expects the net after-tax savings in cash outflows from the investment to be equal in each of the 5 years. What is the minimum amount of after-tax annual savings (including depreciation effects) needed to make the investment yield a 12% return (rounded to the nearest whole dollar) ?

• A)$8,189.
• B)$11,111.
• C)$12,297.
• D)$13,889.
• E)$15,678.

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