(Appendix 8C)Lasater Corporation Has Provided the Following Information Concerning a Capital

Multiple Choice

(Appendix 8C) Lasater Corporation has provided the following information concerning a capital budgeting project: The company's tax rate is 35%.The company's after-tax discount rate is 15%.The project would require an investment of $10, 000 at the beginning of the project.This working capital would be released for use elsewhere at the end of the project.The company uses straight-line depreciation on all equipment. The total cash flow net of income taxes in year 2 is:

A) $62, 500
B) $36, 500
C) $50, 000
D) $80, 000