What is clinton corp''s after tax cash flow

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Question - Clinton Corp bought a machine from Sanders Inc. The machine generates a before tax cash flow of $5,000 per year over the next ten years. Assume the machine was bought for $20,000 and is depreciated straight line (10 years) with no salvage value. What is Clinton Corp's after tax cash flow on the machine in year 3 if their tax rate is 40%? Show your work please.

A. $1,200

B. $2,800

C. $3,000

D. $3,800

Reference no: EM132060139

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