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How much is the total cash flow net of income taxes

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Reference no: EM132019438

Question - Onorato Corporation has provided the following information concerning a capital budgeting project:

Tax Rate 30%

Expected Life of Project 4

Investment required in equip $280,000

Salvage $0

Annual Sales $600,000

Annual Cash Operating Expenses $440,000

The company uses straight-line depreciation on all equipment. How much is the total cash flow net of income taxes in year 2?

A. $160,000

B. $133,000

C. $98,000

D. $90,000

Reference no: EM132019438

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