In Eight Years,Lai Sing Company Plans to Receive $11,000 Cash

question 37

Multiple Choice

In eight years,Lai Sing Company plans to receive $11,000 cash from the sale of a machine that has a $16,000 book value.If the firm is subject to a 30% income tax rate and has a 12% after-tax hurdle rate,the correct discounted net cash flow would be:

• A)$606.
• B)$1,414.
• C)$3,838.
• D)$5,050.
• E)some other amount.

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