Morgan Corp. is studying the incremental cash flows of a pending replacement investment. In Year 1 ,

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Morgan Corp. is studying the incremental cash flows of a pending replacement investment. In Year

1,

the new investment will increase cash revenues by $

40, 000

per year and reduce cash labor expenses by $

20, 000 .

The added MACRS depreciation expense is $

15, 000

and Morgan Corp. has a

40 %

tax rate. What is the incremental after

-

tax cash flow for Year

1 ?

Posted Date: May 18, 2024 11:06 PM

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Morgan Corp. is studying the incremental cash flows of a pending replacement investment. In Year 1 ,

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