Weston Company Is Considering a Capital Project That Delivers a $50,000

question 144

Multiple Choice

Weston Company is considering a capital project that delivers a $50,000 annual net cash flow before tax.The investment will result in annual depreciation expense of $10,000 over the project's four-year useful life.Assuming a tax rate of 40%,what amount of annual after-tax net cash flow will be provided by this project?

• A) $40,000
• B) $16,000
• C) $34,000
• D) $24,000

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