Determine the after-tax cash flow

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Question - Donata Company purchased equipment for $34,000 in December 20x1. The equipment is expected to generate $14,000 per year of additional revenue and incur $3,000 per year of additional cash expenses, beginning in 20x2. Under MACRS, depreciation in 20x2 will be $4,000. If the firm's income tax rate is 30%, determine the after-tax cash flow in 20x2?

Reference no: EM133068478

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