Hampton Company plans to incur $230,000 of additional cash operating expenses and produce $410,000 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 $57,000 outflow.
B. a $126,000 outflow.
C. a $161,000 outflow.
D. a $57,000 inflow.
E. a $126,000 inflow.
Answer: E
Business
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