Bowers Company plans to incur $190,000 of salaries expense and produce $320,000 of additional sales revenue if a capital project is implemented. Assuming a 30% tax rate, these two items collectively should appear in a capital budgeting analysis as:

A. a $39,000 outflow.
B. a $91,000 outflow.
C. a $91,000 inflow.
D. a $39,000 inflow.
E. None of the answers is correct.


Answer: C

Business

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