(Appendix 13C) Prudencio Corporation Has Provided the Following Information Concerning

question 58

Multiple Choice

(Appendix 13C) Prudencio Corporation has provided the following information concerning a capital budgeting project:
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 total cash flow net of income taxes in year 2 is:

• A) $61,000
• B) $70,000
• C) $110,000
• D) $89,000

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