Morgado Inc

question 4

Multiple Choice

Morgado Inc. has provided the following data to be used in evaluating a proposed investment project: The company's tax rate is 30%. For tax purposes, the entire initial investment will be depreciated over 5 years without any reduction for salvage value. The company uses a discount rate of 19%.
-When computing the net present value of the project,what are the annual after-tax cash expenses?

• A)$12,900
• B)$30,100
• C)$55,900
• D)$30,000

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