Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Baton Rouge Company is considering purchasing new equipment which will cost $950,000. This equipment is expected to have a useful life of 12 years, have a salvage value of $50,000 and is expected to have an annual net cash inflow (before taxes) of $80,000. Assume the company is in the 34% tax bracket.

What is Baton Rouge's annual net cash inflow (after taxes)?

Question 12 options:

 

$13,200

 

$73,200

 

$78,300

 

$112,800

 

$52,800

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