A Company Anticipates a Tax-Deductible Cash Expense of $60,000 in Year

question 101

Multiple Choice

A company anticipates a tax-deductible cash expense of $60,000 in year 2 of a project.The company's tax rate is 30%,and its discount rate is 14%.What is the approximate present value of this future cash outflow? Do not round your intermediate calculations and round the final answer to the nearest whole dollar.)

• A) $42,000.
• B) $32,318.
• C) $18,000.
• D) $38,473.

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