The Ambitz Corporation Has an Annual Cash Inflow from Operations

question 49

Multiple Choice

The Ambitz Corporation has an annual cash inflow from operations from its investment in a capital asset of $35,000 each year for four years.The corporation's income tax rate is 40%.Calculate the total after-tax cash inflow from operations for four years.

• A) $ 140,000
• B) $ 150,000
• C) $ 84,000
• D) $35,000

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Definitions:

Demand Schedule

A chart displaying the amount of a product or service that buyers are ready and capable of buying at different price levels.

Total Utility

The total satisfaction or benefit received by consuming a particular quantity of a good or service.

Demand Curve

A visual depiction showing how the demand for a product or service varies with changes in its price over a specific time frame.

Consumer Surplus

The gap between the total sum consumers are ready and able to spend on a good or service versus the total sum they actually spend.