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    (Appendix 8C)A Company Anticipates Incremental Net Income (I
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(Appendix 8C)A Company Anticipates Incremental Net Income (I

Question 71

Question 71

Multiple Choice

(Appendix 8C) A company anticipates incremental net income (i.e. , incremental taxable income) of $50, 000 in year 4 of a project.The company's tax rate is 30% and its after-tax discount rate is 12%.The present value of this future cash flow is closest to:


A) $22, 260
B) $35, 000
C) $9, 533
D) $15, 000

Correct Answer:

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