Mojave Corporation was looking at an investment that would generate $5,000 in net income before taxes. The company's tax rate is 21%, and there would be $2,000 a year in depreciation on the assets. What is the after-tax cash flow of this investment? O $4,370 O $5,950 $3,050 O $3,950 None of the above

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
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Mojave Corporation was looking at an investment that would generate $5,000 in net income before
taxes. The company's tax rate is 21%, and there would be $2,000 a year in depreciation on the
assets. What is the after-tax cash flow of this investment?
$4,370
$5,950
$3,050
$3,950
O None of the above
Transcribed Image Text:Mojave Corporation was looking at an investment that would generate $5,000 in net income before taxes. The company's tax rate is 21%, and there would be $2,000 a year in depreciation on the assets. What is the after-tax cash flow of this investment? $4,370 $5,950 $3,050 $3,950 O None of the above
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