Question: te the answer choice that best completes the statement or answers the question. 1. Stanton Inc. is considering the purchase of a new machine, which
te the answer choice that best completes the statement or answers the question. 1. Stanton Inc. is considering the purchase of a new machine, which will reduce manufacturing costs by $5,000 annually and increase earnings before depreciation and taxes by $6,000 annually. Stanton will use the MACRS method to depreciate the machine, and it has estimated the depreciation expense for the first year as $8,000. Which of the following is the supplemental operating cash flow for the first year if Stanton's marginal tax rate is 40 percent? a. $15,000 b. $23,000 c. $40,000 d. $9,800 e. $4,500
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