How much after-tax cash flow can Mandolin expect

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Problem - Mandolin, Inc. was considering investing in a new piece of equipment that costs $40,000, and would last for ten years and then be worthless. Mandolin is in the 25% tax bracket and hopes to earn $20,000 net income before taxes per year on this asset. How much after-tax cash flow can Mandolin expect on this piece of equipment?

Reference no: EM132847208

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