Determine the after-tax cash flows for the company

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1. Evans Enterprises is in the 30% tax bracket. The company has earnings before depreciation and taxes of $82,000 and depreciation of $45,000.

Determine the after-tax cash flows for the company.

a. $42,000

b. $72,800

c. $82,000

d. $70,900

e. $68,500

2. Determine the net present value of the following project:

Assume the project has an initial cost of $9,500. The project will generate cash flows for three years, with cash inflow amounts of $1,500, $1,500, and $10,000. Assume a discount rate of 9%.

a. Between $0 and $400

b. Less than $0

c. Between $400 and $800

d. More than $800

Reference no: EM131924617

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