Consider the following data extracted from an after-tax cash flow calculation: Before Tax Cash Flow (=22,500) Loan

Question:

Consider the following data extracted from an after-tax cash flow calculation:

Before Tax Cash Flow \(=22,500\)

Loan Principal Payment \(=7,434\)

Loan Interest Payment \(=892\)

MACRS Depreciation Deduction \(=7,405\)

Taxes Due \(=5,397\)

Which of the following is closest to the after-tax cash flow?

a. \(\$ 1,372\)

b. \(\$ 8,777\)

c. \(\$ 8,806\)

d. \(\$ 16,211\)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles Of Engineering Economic Analysis

ISBN: 9781118163832

6th Edition

Authors: John A. White, Kenneth E. Case, David B. Pratt

Question Posted: