What is the annual net cash flow after depreciation and tax

Reference no: EM131047847

A company is considering the purchase of a new machine which will cost $100,000. Net cash flow before depreciation and taxes are $25,000 per year for five years. The machine would be depreciated (straight-line method) over five years with no salvage value. What is the annual net cash flow after depreciation and taxes?

a) 25,000

b) 21,000

c) 28,000

d) 23,000

e) none of the above

Reference no: EM131047847

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