(Appendix 8C)Pont Corporation Has Provided the Following Information Concerning a Capital

question 16

Multiple Choice

(Appendix 8C) Pont Corporation has provided the following information concerning a capital budgeting project: The company's income tax rate is 30% and its after-tax discount rate is 10%.The working capital would be required immediately and would be released for use elsewhere at the end of the 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)$90, 000
• B)$54, 000
• C)$130, 000
• D)$103, 000

---

Definitions:

Secured

Ensured safety or the state of being protected against threats or harm.

Confidential

Something that is intended to be kept secret or private, often within a professional context.

HIPAA

The Health Insurance Portability and Accountability Act, U.S. legislation that provides data privacy and security provisions for safeguarding medical information.

Personal Identification

The process of recognizing oneself or establishing one's identity, often through documents, characteristics, or attributes.