What is the minimum after-tax cash flow

Reference no: EM131931925

Question: The Ace Company is considering investing in a piece of property which costs $105,000. The property will return a constant cash flow forever. If the firm's cost of capital is 9% and the corporate tax rate is over 40%, what is the minimum after-tax cash flow that would make the investment acceptable to Ace?

Reference no: EM131931925

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