Uzzle Corporation Uses a Discount Rate of 10% and Has

question 29

Multiple Choice

Uzzle Corporation uses a discount rate of 10% and has a tax rate of 30%.The following cash flows occur in the last year of an 8-year equipment selection investment project: The assumed salvage value was zero when the depreciation deductions were computed for tax purposes.The total after-tax present value of the cash flows above is closest to:

• A)$12,189
• B)$24,518
• C)$26,199
• D)$28,440

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