Question: Splash Ltd plans to replace equipment which will result in additional revenues of $90,000 but will also increase costs by $40,000 per annum. Splash is

Splash Ltd plans to replace equipment which will result in additional revenues of $90,000 but will also increase costs by $40,000 per annum. Splash is able to claim additional depreciation of $30,000. What will its aftertax cash flow be if the company tax rate, Tc is 30%?

a)$54,400

b)$44,000

c)$40,004

d)None of the above

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