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

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(Appendix 8C) Dekle Corporation has provided the following information concerning a capital budgeting project: (Appendix 8C) Dekle 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) $72, 000 B) $90, 000 C) $18, 000 D) $60, 000 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:

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Definitions:

Warren Buffett

An American investor, business tycoon, philanthropist, and the chairman and CEO of Berkshire Hathaway, known for his successful investment strategies.

Average Tax Rate

The percentage of taxable income that is paid in taxes; taxes paid divided by taxable income.

Stock Market Investor

An individual or entity that allocates capital with the expectation of receiving financial returns in the stock market.

Marginal Tax Rate

The tax rate that applies to the next dollar of taxable income; the percentage of tax applied to your income for each tax bracket in which you qualify.

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