Wable Inc Has Provided the Following Data to Be Used in in Evaluating

Multiple Choice

Wable Inc. has provided the following data to be used in evaluating a proposed investment project: For tax purposes, the entire initial investment without any reduction for salvage value will be depreciated over 5 years. The company uses a discount rate of 16%.
-When computing the net present value of the project, what is the after-tax cash flow from the salvage value in the final year?

A) $55,000
B) $38,500
C) $16,500
D) $0