What the after-tax net cash inflow on the investment is

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The Sip & Dip Donut company is considering the acquisition of a new automatic donut dropper for $600,000. The machine will have a six-year life and will produce before-tax cash savings of $200,000 each year. The asset is to be depreciated using the straight-line method with no salvage value. The company's tax rate is 40 percent.

Problem 1: The after-tax net cash inflow on the investment is?

Reference no: EM132844045

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