Multiple Choice
Forever Company has a tax rate of 40% and a required rate of return of 10%.Depreciation expense relating to operating equipment is $100,000 per year.What is the after-tax cash flow from the annual depreciation expense?
A) $40,000 cash outflow
B) $40,000 cash inflow
C) $60,000 cash outflow
D) $60,000 cash inflow
Correct Answer:
Verified
Correct Answer:
Verified
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