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Compute pio annual incremental after-tax net cash

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Pio's Rubber and Plastics, Inc. currently has annual cash revenues of $310,000 and annual operating expenses of $105,000 to include $45,000 in depreciation. The firm's marginal tax rate is 40 percent. A new extruder can be purchased for $130,000 that will increase revenues by $85,000 per year while operating expenses would increase by $18,000. The investment will increase depreciation by $6,000. Compute Pio's annual incremental after-tax net cash

Reference no: EM132497880

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