Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Hayes, Inc. is considering buying a large piece of equipment for $80,000. Hayes expects that the equipment will last for ten years and then be worthless. During its life, Hayes predicts the equipment will earn $12,000 per year net income before taxes. Hayes is in the 21% tax bracket. What is the expected AFTER-TAX cash flow on this piece of equipment?
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